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2019 (2) TMI 1641 - AT - Income TaxAddition on account of income surrendered as per statement recorded u/s 132(4) - no incriminating material or undisclosed income or investments were found during the course of search & seizure - assessee to buy peace of mind accepted and declared ₹ 3 crores in personal name - HELD THAT:- It is undisputed fact that the statement recorded u/s 132(4) has a better evidentiary value but it is also a settled position of law that the addition cannot be sustained merely on the basis of the statement. There has to be some material corroborating the contents of the statement. In the case in hand, revenue could not point out as what was the material before the A.O., which supported the contents of the statement. In the absence of such material, coupled with the fact that it is recorded by the Ld. CIT(A) that the assessee himself had surrendered a sum of ₹ 69,59,000/- and ₹ 75,00,000/- in A.Y. 2008-09 and 2009-10 respectively. The A.O. failed to co-relate the disclosures made in the statement with the incriminating material gathered during the search. Therefore, no inference is called for in the finding of the Ld. CIT(A) and is hereby affirmed. Ground raised by the revenue is dismissed. Penalty u/s 271(1)(c) - non assigning of reasons - HELD THAT:- We find that the notices issued by the A.O. are contrary to the laws laid down in the case of PCIT-I Vs. Kulwant Singh Bhatia [2018 (5) TMI 960 - MADHYA PRADESH HIGH COURT] D.R. could not controvert the fact that notice issued by the A.O. for initiating penalty proceedings u/s 271(1)(c) does not assign any reason for initiating the penalty. Hence, it can be inferred that no specific charge is made for initiating the penalty. In the absence of the specific charge, the proceedings initiated for imposing penalty are vitiated in the light of the judgement of the Hon'ble jurisdictional High Court. We therefore, quash the penalty order being bad in law. - Decided in favour of assessee.
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