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2016 (12) TMI 456 - AT - Income TaxPenalty under section 271(1)(c) - unaccounted gift received - Held that:- The explanation of the assessee is that sum of ₹ 36,000/- was deposited out of the gifts received on the birth-day of his son. Such gifts were received from relatives. As far as second addition is concerned, it is based on a document which was found during the course of search at the residence of the assessee. This document is unregistered sale deed. An unregistered sale deed does not confer any title. There is nothing on record which can conclusively say that title of this land vested with the assessee, more so, it was cancelled. Section 17 of the Registration Act contemplates that any immovable property having value of more than ₹ 100/- cannot be transferred unless it is registered. Then, what would be evidentiary value of such document. It appears that authorities have been influenced in the quantum proceedings by the pendency of criminal proceedings for prosecution of the assessee on account of corruption. Allegation against the assessee was that he was accepting ₹ 80,000/- as bribe. This appears to be main reasons for making addition on the basis of circumstantial evidence. AO failed to prove that explanation of the assessee was false. There is no concrete positive evidence against the assessee exhibiting unexplained investment, except unregistered sale deed, which does not confer any title. Addition might have been confirmed, but this type of evidence would not be sufficient to visit the assessee with penalty, therefore, delete penalty. - Decided in favour of assessee.
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