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2017 (8) TMI 744 - AT - Income TaxPenalty u/s 271(1)(c) - amount parked in the ‘Suspense account’ by the assessee - Held that:- As assessment proceedings are separate and distinct from penalty proceedings, therefore, now when the aforesaid amount of ₹ 2,76,180/- (supra) was to be held as the ‘Unexplained money’ of the assessee under Sec. 69, then the same as per the said clearly worded statutory provision could only be related to and held as the income of the assessee for the year in which the investment is found to have been made by the assessee. We thus circumscribing our observations solely for the purpose of adjudication of the present appeal, are thus of the considered view that on the basis of the aforesaid material fact itself, which we find had though categorically been raised by the assessee before the CIT(A), but had not been adverted to by the latter, no penalty under Sec. 271(1)(c) could be justified in respect of the amount of ₹ 2,76,180/-(supra) during the year under consideration, viz. A.Y. 2008-09. That as we have quashed the levy of penalty imposed by the A.O under Sec. 271(1)(c) on the basis of our aforesaid observations, we therefore refrain from adverting to the other contentions raised by the assessee before the lower authorities while assailing the validity of the penalty imposed. Appeal of the assessee is allowed.
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