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2020 (1) TMI 911 - AT - Income TaxPenalty u/s 271(1)(c) - addition towards salary income made by the Assessing officer during the course of proceedings u/s 153A r/w 143(3) - Undisclosed salary income received from M/s Ganpati Royal Residency by not accepting the explanation of assessee that such salary income was inadvertently left to be included at the time of filing the return - HELD THAT:- Penal provisions must be strictly construed and only on satisfaction of conditions specified therein, the penalty can be levied. In the instant case, the assessee has not been found to be recipient of salary income during the course of search. The assessee is an individual deriving salary and interest income and not required to maintain books of accounts. There is nothing on record that any documents/material/information was found during the course of search which remotely indicate that the assessee is recipient of salary income. It is only during the course of proceedings u/s 153A that the AO noticed that the assessee is in receipt of salary income and which has not been disclosed by the assessee in his return and the same was accordingly brought to tax. The dispute is not that the salary income was not offered to tax by assessee in his return of income which is an admitted position but the question is whether such salary income has been found during the course of search and the answer to that in not in affirmative. In the present case, we therefore find that none of the conditions specified in explanation 5A to section 271(1)(c) is satisfied in the instant case and therefore, levy of penalty is hereby directed to be deleted. - Decided in favour of assessee.
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