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2016 (11) TMI 947 - AT - Income TaxPenalty under section 271(1)(c) - provision of penalty - disclosure of income on the basis of the search operation - Held that:- The penalty in this case, if at all leviable, it should have been levied under section 271AAA(1) and not under section 271(1)(c) as has categorically been provided in sub-section (3) of section 271AAA. The intention of the Legislature in incorporating the provisions contained under section 271AAA effective during the period June 1, 2007, to July 1, 2012, is to provide general amnesty in search and seizure cases, and the case of the assessee undisputedly falls under section 271AAA and cannot be dealt with under section 271(1)(c) by any stretch of imagination even. So, we are of the considered view that the very initiation of the penalty proceedings against the assessee under section 271(1)(c) are vitiated in view of the amended provisions of law applicable effective from June 1, 2007, till July 1, 2012, as the additional income to the tune of ₹ 36,80,520 was disclosed by the assessee on the basis of the search operation conducted on February 10, 2009. So, without going into the merits of the case, we are of the considered view that the initiation of penalty proceedings as well as the penalty orders and the impugned order passed by the learned Commissioner of Income-tax (Appeals) are not sustainable in the eyes of law. Hence, the present appeal is allowed and the penalty imposed in this case is hereby deleted. - Decided in favour of assessee
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