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2022 (12) TMI 1470 - ITAT RAJKOTLevy of penalty u/s 270A - misreporting of income in case of property sold jointly by brothers - search conducted at third party - CIT(A) deleted penalty levy - HED THAT:- We observe that search was conducted at the premises of the third party and on the basis of diary seized during the course of search, certain additions were offered to tax by the assessee in order to buy peace. Since the search was conducted during the year under consideration, the accounts of the assessee were not finalised and there was still time for the assessee to file return of income. Accordingly, the addition amount offered to tax was reflected in the return of income filed by the assessee on 08-03-2018. On a perusal of the conditions laid out u/s 270A case of the assessee does not fall under any of the provisions of section 270A of the Act. Since the search took place during the year under consideration at the premises of third party, and there was still time to file return of income, the said income in respect of on-money receipts was included in the income offered to tax by the assessee in the return of income. Even the AO in the penalty order has failed to specify under which specific clause of section 270A of the Act does the case of the assessee fall under. CIT(Appeals) in his appellate order has analysed the non-applicability of the provisions of section 270A of the Act in the instant set of facts. Accordingly no infirmity in the order of Ld. CIT(Appeals) deleting penalty imposed under section 270A Decided in favour of assessee.
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