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2021 (8) TMI 320 - AT - Income TaxPenalty u/s 271AAB - assessee was not subjected to search - HELD THAT:- No search in the case of present assessee before us and the assessee has admittedly accepted the jewellery in a statement under section 132(4) of the Act pursuant to which notice under section 153C was issued to the assessee. The co-ordinate Benches have taken the view that the penalty under section 271AAB can be levied in the hands of a searched person only. The assessee herein is not subjected to search, meaning thereby, penalty under section 271AAB cannot be levied in the hands of the assessee. Even though, the Assessing Officer has not cited any reason for dropping penalty proceedings, yet the fact remains that the penalty under section 271AAB cannot be levied in the hands of the assessee, as opined by coordinate Benches. Hence, very initiation of revision proceedings is not in accordance with law and the same cannot be sustained. Even otherwise, there is possibility of two views on the issue of levying of penalty under section 271AAB of the Act in the hands of the assessee. Accordingly, we quash the revision order passed by the learned Principal Commissioner of Income-tax. - Decided in favour of assesee.
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