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2019 (1) TMI 656 - HC - Income TaxPenalty u/s 271(1)(c) - assessment under Section 153C - proof of addition to the declared income - Held that:- Assessee had filed returns of income for three assessment years even before the notice under Section 153C of the Act was issued. For remaining two years the Assessee contended that no such return was required to be filed since his income did not exceed the taxable limit. This later assertion of the Assessee also was found to be true and correct since the Assessing Officer accepted the Assessee’s declaration of meager income of ₹ 18,957/- and ₹ 43,857/- respectively for the said two assessment years 2005-06 and 2006-07. We find no error in the Tribunal holding that the penalty could not have been imposed. There was no question of the Assessee not declaring the income of the particulars of the income so as to invite penalty under Section 271C. The three returns had been filed even before issuance of notice under Section 153C of the Act and in other two cases as accepted by the AO the Assessee had no taxable income. When there was no addition to the declared income in any of the years, penalty was correctly deleted by the Tribunal. Explanation 5A below Section 271 of the Act would apply only in case of searched person. This Section is confined to searched person and cannot be extended to the person other than the searched person. - decided against revenue.
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