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2016 (8) TMI 357 - AT - Income TaxPenalty u/s.271(1)(c) - assessment u/s 153A - income surrendered during the course of search - Held that:- Categorical finding has been recorded by CIT(A) to the effect that assessee has fulfilled all the conditions stipulated in Explanation 5 to Section 271(1)(c) for availing immunity for levy of penalty. The assessee has also paid taxes on this income before filing of return. The detailed finding recorded by CIT(A) and the conclusion drawn by him is supported by the decision of Hon’ble Madras High Court in the case of SDV Chandru [2003 (12) TMI 40 - MADRAS High Court ].Accordingly we do not find any reason to interfere in the order of CIT(A) deleting the penalty levied with respect to income surrendered during the course of search With respect to the penalty levied with reference to lose papers 1 to 65 Annexure-A/4, we found that it was explained by the assessee before the AO that certain portion of the seized material could not be copied out as it should be on the photocopies obtained due to the fact that the impugned figures were written in pencil on which transparent cello tape was fixed so that the figures written in pencil cannot be tampered in the original documents those were seized. This fact of poor photocopying of the pencil written portion of the documents and therefore poor and illegible copied matter was not properly appreciated by the Ld. Assessing Officer and he levied penalty on the difference of ₹ 73,96,500/-. We also found that assessee otherwise arrived at unaccounted income of ₹ 51,54,000/- from the same seized material which was clearly legible after copying it and accordingly offered the same for taxation. The contention of assessee that this amount was unintentional and it had no intention to conceal the income before the Revenue. This contention of the assessee was not properly appreciated by the lower authorities. Similar addition of ₹ 25,93,263/- was made on the ground of unaccounted cash payment which was recorded to the tune of ₹ 41,43,263/- out of which assessee has surrendered only ₹ 15,50,000/-. The assessee has explained that it was due to mistake of Accountant as the entry was not properly appreciated by the lower authorities and they have also levied penalty with respect to these difference. In the interest of justice and fairplay we restore the penalty levied with reference to addition of ₹ 73,96,500/- and ₹ 25,93,263/- back to the file of AO for deciding afresh after giving due opportunity to the assessee. - Decided in favour of assessee for statistical purposes.
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