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2016 (3) TMI 85 - AT - Income TaxPenalty u/s 271(1)(c ) - Addition in the order passed u/s 153C/143(3) - selection of assessment year - Held that:- We hold that the assessee had offered the business income on sale of flats in Asst Year 2009-10 in respect of cheque portion of sale consideration which has been accepted by the department in section 143(3) proceedings. Therefore the unaccounted cash element received on sale of flats was also assessable only in Asst Year 2009-10 and not in Asst Year 2008-09 as per the accounting practice followed by the assessee and also as held in the various decisions relied upon hereinabove. We hold that income has to be assessed in the year to which it pertain to and not in any other assessment year based on the offering of the assessee. Hence we hold that the cash receipts on sale of flats as per the seized document was not taxable in Asst Year 2008- 09 though the same was offered by the assessee itself in that year. This would be an excruciating factor in the penalty proceedings and hence the assessee cannot be attributed with any concealment of income or furnishing of inaccurate particulars of income for the Asst Year 2008-09 in this regard. In view of the aforesaid findings and judicial precedents, we hold that once a particular income was not assessable in the Asst Year 2008-09 then even though the income might have been assessed in Asst Year 2008-09, penalty u/s 271(1)(c) of the Act cannot be imposed on the same. - Decided in favour of assessee
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