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2016 (9) TMI 710 - AT - Income TaxPenalty proceedings u/s. 271(1)(c) - unexplained investment in a property - Held that:- There is no dispute that the sole surviving issue in the instant appeal is qua correctness of section 271(1)(c) penalty in question arising from unexplained addition amount of ₹ 17 lacs. It has already come on record that this tribunal in quantum proceedings has already held the assessee to have included impugned assessment years unaccounted income in his disclosure of ₹ 31 lacs made during survey and assessed in assessment year 2007-08. We accordingly are of the opinion that the assessee deserves to be given telescoping effect as he has declared the impugned assessment year’ income remaining unaccounted in assessment year 2007-08. Learned co-ordinate bench in quantum proceedings has already adjudicated the relevant issue. The same has become final. We conclude in these peculiar facts that the above stated telescoping effect of the income declared in survey can be reasonably treated as source of assessee’s unexplained investments in question. We reiterate that quantum and penalty are separate proceedings and each and every disallowance/addition made in former does not lead to automatic application of the latter penal provision as held by hon’ble apex court in CIT vs. RELIANCE PETROPRODUCTS PVT. LTD. (2010 (3) TMI 80 - SUPREME COURT ). We accept assessee’s arguments accordingly. The impugned penalty stands deleted - Decided in favour of assessee Suppressed receipts from un-recorded tuition classes - Held that:- There is no dispute that merits of the issue forming backbone of the impugned penalty are the same in the impugned assessment year as well as those in the preceding assessment year 2004-05. The assessee has already succeeded in the said assessment year. He has not preferred any quantum appeal in the impugned assessment year. We conclude that quantum and penalty are separate proceedings (supra). We accordingly observe that once the assessee has succeeded on quantum issue in preceding assessment year, the mere fact that he has not preferred any separate appeal in the impugned assessment year is not to be taken as the sole reason for confirming the penalty in question - The impugned penalty stands deleted - Decided in favour of assessee
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