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2019 (2) TMI 281 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - additions resulting from search and seizure action u/s. 132(1) - addition on ‘Advances from Customers’ - Held that:- In the present case as has been pointed by the assessee the amounts were duly reflected in the Balance Sheet under the head ‘Advances from Customers’ and ‘Capital Account’. This fact has not been disputed by the Revenue. Thus, it cannot be said that there was a concealment of income. The assessee purportedly offered the amount as additional income as the assessee failed to substantiate the source of amounts. Hence, is a case of ‘furnishing inaccurate particulars’ and not ‘concealment’. Assessing Officer in assessment order while recording satisfaction for initiating penalty has invoked the charge of concealment of income within the meaning of section 5A to Section 271(1)(c) and has levied penalty for the similar reasons. Since, wrong charge has been invoked for recording of satisfaction and levy of penalty, the penalty is not sustainable. It is a well settled law that penal provisions are to construed strictly and there is no margin of error when penalties are to be levied. Thus, in our considered view penalty on the addition is bad in law and deserves to be deleted. Levy of penalty u/s. 271AAA - Held that:- AR has not been able to show any perversity in the order of Commissioner of Income Tax (Appeals) in partly confirming levy of penalty u/s. 271AAA of the Act. No reason to interfere with the well reasoned order of Commissioner of Income Tax (Appeals). Accordingly, the same is upheld and the appeal of assessee is dismissed.
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