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2018 (2) TMI 94 - AT - Income TaxValidity of penalty order passed u/s 158BFA(2) as barred by limitation - Held that:- The quantum of undisclosed income gets crystallized only when the Assessing Officer has carried out directions of the ITAT whereby the matters were restored to the file of the Assessing Officer. This means that all earlier assessment orders and subsequent appeals in pursuance to the original assessment order were no more relevant. The Assessing Officer recomputed the income pursuant to the order of the Tribunal dated 30/12/2008 which attained finality in appeal decided by the ld. CIT(A) on 29/11/2013. In this view of the matter, we are of the considered view that the material date, in reference to which limitation has to be considered, is 29/11/2013 and, therefore, the order passed by the Assessing Officer in levying the penalty is within the period of limitation prescribed under the law. Imposition of penalty u/s 158BFA(2) - Held that:- Assessing Officer has not brought out any appropriate reason for levy of penalty. There is a clinching evidence to demonstrate that source of KVPs is explained through Will executed by the grandfather. The assessee could not foresee that investment disclosed in the Will of his grandfather and investment made according to the wishes expressed by his grandfather under the Will could become a reason for imposition of penalty under section 158BFA(2) of the Act. The Will was also accepted by the Coordinate Bench of ITAT Lucknow and its genuineness was never challenged anywhere. There is no malafide element for imposition of penalty in this case of the assessee. We set aside the order of the ld. CIT(A) and delete the penalty levied under section 158BFA(2) of the Act. The assessee, therefore, succeeds in the grounds on merit.
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