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2016 (10) TMI 838 - AT - Income TaxPenalty levied u/s 271(1)(c) - unexplained jewellery - Held that:- Except for raising the grounds pleading for cancellation of penalty levied under section 271(1)(c) of the Act in respect of seized diamonds no material evidence has been furnished before us to controvert the findings of the authorities below that the diamonds seized in search action under section 132 of the Act were unexplained. We have respectfully perused the judicial pronouncements cited by the assessee and humbly concur with the averments of the learned D.R. for Revenue that these judgements are clearly distinguishable on facts from the case on hand and pertain to issues of either (a) rejection of assessee’s claim of whether expenditure was capital or revenue in nature (cited case at S. No. (1)) or (b) were cases where estimation of income was made and for both of which the Hon'ble courts had held that penalty under section 271(1)(c) was not leviable. In our view, the case on hand stands on a different footing from the cited cases (supra), as there is neither rejection of the assessee claim of revenue expenditure as being capital in nature nor estimation of income in some cases after rejection of books of account; and therefore, would not come to the rescue of the assessee. In this factual and legal matrix of the case, as discussed above, we uphold the impugned order of the learned CIT(A) in confirming that penalty under section 271(1)(c) of the Act for concealment of income is to be levied in respect of the unexplained diamonds - Decided against assessee
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