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2016 (7) TMI 938 - HC - Income TaxPenalty levied u/s.271(1)(c) - additional income disclosed in furtherance to section 153A notice - Held that:- In terms of explanation 5A, thus even in a case where during the search, the assessee is found to be the owner of any income based on any entry in the books of account or other documents or transactions, the penalty would attach, provided other requirements are fulfilled. This clause was not there in original explanation 5 which applied till 1st June 2007 and has therefore, to be applied in the present case. We have perused the order of assessment and found that entire amount of ₹ 2.06 crores pertained to on-money receipts by the assessee. There was no money, bullion, jewellery or other valuable article or thing of such value found during the search and the additional income was based on materials collected during the search. Prior to 1st June 2007, therefore, by applying explanation 5, penalty could not have been levied. Looked from this angle, we do not find any error in the view of the Tribunal. For the reasons somewhat different from those recorded by the Tribunal, therefore, this tax appeal is dismissed. - Decided in favour of assessee.
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