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2017 (1) TMI 1726 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - Assessment u/s 153A - HELD THAT:- Explanation 3 is not attracted in the facts and circumstances of instant case. After search, the assessment and subsequent proceedings are carried out under special provisions of the Act. The Legislature in its wisdom has specifically mentioned about issuance of notices u/s. 142(1) or u/s. 148 in Explanation 3. There is no reference to notice u/s. 153A of the Act. Where return of income is filed in pursuance to search action, provisions of Explanation 5 or 5A as the case may be are attracted, provided other conditions set out in the said explanations are fulfilled. Explanation 3 is attracted only where the assessment is made under regular provisions and not in case of search. Thus, we are of the considered view that the CIT (Appeals) has erred in invoking the provisions of Explanation 3 for confirming penalty u/s. 271(1)(c) of the Act in the present case. Therefore, no case for levy of penalty u/s. 271(1)(c) r.w. Explanation 3 is made out against the assessee. The Department is not in appeal against the order of Commissioner of Income Tax (Appeals). - Decided in favour of assessee.
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