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2015 (9) TMI 133 - AT - Income TaxLevy of penalty u/s 271AAA - Held that:- It is seen from the assessment order that the ld. AO had stated that the assessee had no option but to accept the truth and come forward with the disclosure and hence concluded that but for the search the assessee would not have come forward with the offer of undisclosed income and on that ground levy of penalty is justified. We find that if this argument of the ld. AO is to be appreciated, then the very purpose of providing immunity u/s 271AAA(2) of the Act gets defeated. The legislature in its wisdom had provided for granting immunity from levy of penalty in certain circumstances as contemplated in 271AAA(2) of the Act. The levy of penalty u/s 271AAA cannot be made automatic pursuant to the search. It is seen that even though the income of ₹ 27,88,222/- was not offered by him in the regular return filed by the assessee on 31.03.2009 for A.Y. 2008-09, it is of no consequence as in terms of 153A of the Act, it becomes a pending proceeding, which gets abated pursuant to the search. Thus we hold that the assessee had cumulatively satisfied the three conditions contemplated in section 271AAA(2) of the Act and accordingly is eligible for immunity from levy of penalty - Decided in favour of assessee.
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