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2015 (10) TMI 991 - AT - Income TaxPenalty u/s 271(1)(c) - addition on the basis of seized papers from the premises of the assessee and on account of cash deposited in the HDFC Bank - CIT(A) deleted the penalty - Held that:- It transpires that if an addition is to be made on the basis of a seized document, then it must be supported by some identification having any nexus with the unaccounted business activity of the assessee. The nature of transaction should reflect some direct or indirect connection with the accounted or unaccounted activity of the assessee. If a document is silent or the ingredients could not be linked, then the said document was considered as "a dumb document". Revenue Department had not made sufficient enquiry so as to establish that in fact the said document had unearthed a concealed business activity of the assessee. In the absence of any such evidence, the addition so made by the AO remained un-corroborated, hence, we hereby reverse the findings and allow this ground. Since the addition in quantum proceedings has been deleted by the Coordinate Bench the penalty does not survive, therefore we do not find any infirmity in the order of the ld.CIT(A), same is hereby upheld - Decided in favour of assessee. Penalty u/s 271(1)(c) - unexplained cash deposits - Held that:- In the present case, the AO has given a clear finding that the assessee is guilty of concealing the particulars of income and furnishing inaccurate particulars of income. Therefore, the decisions relied upon by the ld.counsel for the assessee do not help to the assessee and we do not find any merit in the arguments advanced by the ld.counsel for the assessee. Thus, the ground of Assessee’s appeal is hereby rejected.
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