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2016 (9) TMI 395 - AT - Income TaxPenalty u/s 271AAA - Held that:- By way of letters dated 24.12.2010 ad 28.12.2010, the assessee offered additional sum of ₹ 1,05,88,900/- which was accepted by the Assessing Officer without any further addition. The assessee, in fact, telescoped the lease rental received by the assessee against the voluntary contribution received by Sri Vetrivel Educational & Charitable Trust. When the assessee claims that voluntary contribution was received by Sri Vetrivel Educational & Charitable Trust, this Tribunal is of the considered opinion that there was no justification for levy of penalty u/s 271(1)(c) of the Act. The Assessing Officer has to reappreciate the material available on record and find out whether the income actually relates to the assessee. Moreover, by sec. 271AAA of the Act, the Parliament enacted a separate provision for levy of penalty. Sub-section (3) of sec. 271AAA of the Act in categorical terms declares that no penalty can be levied u/s 271(1)(c) of the Act in respect of the income which falls in subsection( 1) of sec. 271AAA of the Act. In the case before us, admittedly, the search was conducted on 29.9.2008, therefore, penalty, if any, has to be levied only u/s 271AAA of the Act and definitely not u/s 271(1)(c) of the Act. Therefore, this Tribunal is of the considered opinion that the CIT(A) has rightly deleted the penalty levied by the Assessing Officer. Levy of penalty u/s 271(1)(c) - Held that:- This Tribunal is of the considered opinion that mere addition in the assessment order cannot be reason for levy of penalty u/s 271(1)(c) of the Act. The Assessing Officer has to reappreciate the material available on record and find out whether there was any concealment of income. In the case before us, both the lower authorities have not reappreciated the material available on record. Merely because the assessee offered the amount as income, they have levied/confirmed penalty u/s 271(1)(c) of the Act. The fact remains that the search was conducted in the case of Shri A.N. Radhakrishnan on 29.9.2008. Therefore, penalty, if any, has to be levied u/s 271AAA of the Act and definitely not u/s 271(1)(c) of the Act. Sub-section(3) of sec. 271AAA of the Act in categorical terms declares that no penalty can be levied u/s 271(1)(c) of the Act when the income falls u/s 271AAA(1) of the Act. In the case before us, it is not in dispute that the income falls u/s 271AAA(1) of the Act. Therefore, no penalty can be levied u/s 271(1)(c) of the Act. In view of the above, we are unable to uphold the orders of the authorities below. Accordingly, the orders of the lower authorities are set asie and the penalty levied by the Assessing Officer u/s 271(1)(c) of the Act is deleted.
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