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2018 (1) TMI 280 - AT - Income TaxLevy of penalty u/s 271(1)(c) - income surrendered pursuant to search operation carried out on the assessee - Held that:- In all the cases referred to by the assessee, it was held that for the purpose of imposition of penalty u/s 271(1)(c) of the Act, no reference could be made to the returned income u/s 139 of the Act and it was only the income returned u/s 153A, as per the scheme of search assessment, which could be taken cognizance of since the scheme of search assessment as designed by the Legislature did not prescribe to take into account the earlier assessment proceedings whether abated or not. Further in all those cases, that the assessee could not be deemed to have concealed the particulars of his income as per Explanation-5 also since the additional income declared in the return of income filed u/s 153A did not pertain to any asset i.e money, bullion, jewellery or other valuable article or thing found in the possession of the assessee. In this context, it was held that no penalty u/s 271(1)(c) of the Act could not be imposed. In the present case, the assessee is clearly deemed to have concealed particulars of his income as per the applicable Explanation 5A to section 271(1)(c) of the Act as held above by us.Therefore the fact of having disclosed the entire income in the return filed u/s153A will be of no assistance to the assessee.Such an interpretation, in our considered opinion, would render Explanation 5A to section 271(1)(c) otiose. - Decided against assessee
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