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2016 (2) TMI 347 - AT - Income TaxPenalty u/s.271(1)(c) - undisclosed income - Held that:- The assessee, in the instant case, has offered the undisclosed income of ₹ 60 lakhs in A.Y. 1991-92 and 1994-95 on the basis of sale of flats during those years and the assessee has given a note in the return filed for the impugned assessment year giving reasons for not declaring the same in this assessment year. It is now accepted proposition that on-money has to be brought to tax only in the year of sale of flats. Therefore, merely because addition has been sustained in quantum proceedings, the same cannot be a ground for levy of penalty u/s.271(1)(c) of the I.T. Act, 1961. The assessee can always make new plea during penalty proceedings. It is now the settled proposition of law that assessment proceedings and quantum proceedings are separate and distinct. In this view of the matter, we are of the considered opinion that this is not a fit case for levy of penalty u/s.271(1)(c) of the I.T. Act. We therefore, uphold the order of the CIT(A). - Decided in favour of assessee
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