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2017 (1) TMI 996 - ITAT PUNELevy of penalty u/s. 271(1)(c) - unexplained deposits in the Bank account - addition u/s 68 - Held that:- The notice issued for levy of penalty u/s. 271(1)(c) does not clearly spell out the charge for levy of penalty, therefore, the same is defective, null and void and the subsequent proceedings arising there from are vitiated. Accordingly, the penalty is liable to be cancelled on this account alone. The deposits made in the bank account were not routed through cash book of the assessee. The entries are made in the bank passbook and there are no cash credit entries in the cash book of the assessee. Therefore, the addition made u/s. 68 is not sustainable. Once, the addition is held as not sustainable, there is no question of levy of penalty on such addition. Purchase of scooter a perusal of bank statement clearly shows that a sum of ₹ 41,378/- has been debited from the account of assessee on 13-08-2008 for payment to Nilesh Motors. The Assessing Officer has made addition in respect of cash credits in the Bank account. Since, the payment has been made from same bank account for purchase of scooter, this would result in double addition. Therefore, such an addition is not sustainable and therefore does not attract penalty u/s. 271(1)(c) of the Act. Undisclosed investment in plots - The dispute is only with regard to the assessment year in which transaction has to be recorded in the books of account. Under such circumstances we are of the view that no penalty is to be levied on addition, where the dispute is with regard to year of taxability. - Decided in favour of assessee
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