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2017 (8) TMI 234 - AT - Income TaxPenalty under section 271(1)(c) - addition of gift - Held that:- We have examined the details and noticed that the notice under section 143(2) of the Act became time barred on August 31, 2004 at the time when the search took place much later on August 3, 2006. Therefore, it follows that as on the date of search, there was an assessment completed or processing of return of income of the assessee under section 143(1) of the Act. Subsequently, the Assessing Officer initiated proceedings under section 153A and in the assessment completed under section 143(3) read with section 153A, the Assessing Officer has brought to tax a sum of ₹ 10,00,000 being the amount of gift received from Shri Gayanchand Jain without any incriminating material found during the course of search. Once this is the position the issue is clearly covered in favour of the assessee and against the Revenue by the decision in the case of Continental Warehousing Corporation (Nhava Sheva) Ltd. [2015 (5) TMI 656 - BOMBAY HIGH COURT]. Respectfully, following the same and in the given said of facts, we are of the view that this gift received from Shri Gayandhand Jain for an amount of ₹ 10,00,000 disclosed in the return of income as evidence by the capital account and which has not been abated, the amount of gift cannot be added. Accordingly, we reverse the orders of the Commissioner of Income-tax (Appeals) as well as that of the Assessing Officer and delete the addition in all these eleven appeals of the assessee. Penalty deleted. - Decided in favour of assessee.
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