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2019 (4) TMI 1156 - AT - Income TaxPenalty u/s 271(1)(c) - unexplained income - CIT-A reducing the penalty in respect of cash component for only 3 units for which evidence was found during the search - HELD THAT:- As mentioned earlier the Ld. CIT(A) restricted the addition to the extent of 17% and deleted the balance 83% of estimate. In appeal, in assessee’s own case for AY 2007-08 have directed the AO to delete the addition made on account of extrapolation in respect of advances received during the year. Observing that such an exaggerated/wild extrapolation in the matter is unjust and unwarranted, especially when enquiries were done and nothing adverse was found against the assessee and as the offer of ₹ 1 crore made covers all the discrepancies, the Tribunal held that no further additions made by the AO/CIT(A) is sustainable. Also in respect of the additional ground filed by the assessee to the effect that notice u/s 143(2) was not issued to the assessee within a period of 12 months from the date of filing of return for the impugned assessment year, the Tribunal restored the ground to the file of the AO for deciding afresh as per law after verifying the records. Addition on account of on-money - CIT(A) restricted the addition to the extent of 17% and deleted the balance 83% of estimate basis - HELD THAT:- Tribunal directed the AO to delete the addition made on account of extrapolation in respect of advances received during the year. Further observing that such an exaggerated/wild extrapolation in the matter is unjust and unwarranted especially when inquiries were done and nothing adverse was found against the assessee and as the offer of ₹ 1 crore covers all the discrepancies, the Tribunal held that no further additions made by the AO/CIT(A) is sustainable. Also in respect of the additional ground filed by the assessee to the effect that notice u/s 143(2) was not issued to the assessee within a period of 12 months from the date of filing of return for the impugned assessment year, the Tribunal restored the ground to the file of the AO for deciding afresh as per law after verifying the records.
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