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2021 (6) TMI 612 - AT - Income TaxPenalty u/s 271AAB/271(1)(c) - cash was seized u/s 132A - disclosure was made by the assessee only because cash was seized by the department - HELD THAT:- A perusal of the same would show that penalty has been proposed by Ld. AO u/s 271AAB of the Act. Another notice has been issued on 22/01/2018 which show-cause the assessee to defend the penalty as proposed in notice u/s 271(1)(c) for concealment of income as well as for furnishing of inaccurate particulars of income - penalty has finally been levied u/s 271(1)(c) for concealment of income as well as for furnishing of inaccurate particulars of income. The chronology of the events would show that Ld. AO has failed to frame as well as specify the exact charge for which penalty was being levied against the assessee. Both the stated limbs i.e. concealment of income & furnishing inaccurate particulars of income, as per settled legal position, carry different connotations and operate differently. As obligatory on the part of Ld. AO to frame specific charge against the assessee before levying penalty. The failure to do the same would render the penalty null and void in the eyes of law. No doubt, the discrepancies were found during the survey. This has yielded income from the assessee in the form of amount surrendered by the assessee. Presently, we are not concerned with the assessment of income, but the moot question is to whether this would attract penalty upon the assessee under the provisions of section 271(1)(c) - Obviously, no penalty can be imposed unless the conditions stipulated in the said provisions are duly and unambiguously satisfied. Since the assessee was exposed during survey, may be, it would have not disclosed the income but for the said survey. However, there cannot be any penalty only on surmises, conjectures and possibilities. Section 271(1)(c) of the Act has to be construed strictly. Unless it is found that there is actually a concealment or nondisclosure of the particulars of income, penalty cannot be imposed. There is no such concealment or non-disclosure as the assessee had made a complete disclosure in the income-tax return and offered the surrendered amount for the purposes of tax. In view of the fact that returned income has finally been accepted by the revenue, no penalty could be imposed. - Decided in favour of assessee.
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