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2017 (4) TMI 1425 - AT - Income TaxPenalty u/s 271(1)(c) - search and seizure - notice u/s 153A - additional income declared by the assessee in response to the notice u/s 153A as concealed income - difference between returned filed u/s.153A and assessed income, different between original returned income and assessed income - HELD THAT:- A perusal of the assessment order would indicate that no reference to the seized material is being made qua income declared by the assessee in the return filed under section 153A. We are of the view that this income should be represented with some assets, bullion, money, jewellery or any entry which has unearthed this income. But no such thing has been emerging out. Hon’ble Delhi High Court in the case of Pr.CIT Vs. Neeraj Jindal & Others [2017 (2) TMI 1002 - DELHI HIGH COURT] has considered this aspect and observed that Explanation 5 could be invoked if the income declared by the assessee has a nexus with any seized material. Deeming fiction provided in Explanation 5A would trigger if the income declared by the assessee is based on some money, bullion, jewellery or an entry found during the course of search. If the assessee has declared such income voluntarily without unearthing such income during the course of search, then it would not be considered that the assessee has concealed the income. Explanation 5A would not be applicable. In the result, all the appeals are allowed and impugned penalties are deleted. - Decided in favour of assessee
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