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2021 (4) TMI 482 - AT - Income TaxValidity of the penalty u/s 271(1)(c) or 158BFA - in search certain documents of incriminating nature were found and accordingly the assessment was framed under section 158BC after making certain addition - AO also initiated the penalty proceedings under section 158BFA(2) of the Act by issuing notice dated 30- 07-2004 - AO finally passed the order under section 271(1)(c) of the Act levying the penalty - HELD THAT:- Reading of provision u/s 158BFA (2) shows that it is applicable for the specified years in the case of search carried our u/s 132 of the Act, on or after first day of June 2007, but before the first day of July 2012. In case of search proceedings it is compulsory to make the assessment in particular manner under the different provision of the sections of the Act. Similarly, the penalty is levied with respect to search proceedings under a different provisions. AO has levied the penalty under section 271(1)(C) of the Act by observing that the assessee has concealed/furnished inaccurate particular of income whereas there is no concept of concealment/furnishing inaccurate particular of income under the provisions of section 158BFA(2) of the Act as discussed above. In view of the above we hold that the penalty levied under section 271(1)(c) of the Act is not sustainable and accordingly we quash the same. Hence the ground of appeal of the assessee is allowed.
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