TMI Blog2018 (5) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... ting this aspect in the quantum appeal of the assessee, the Tribunal recorded a finding that no satisfaction was recorded in this case. In view of above order of the Tribunal quashing the assessment order for the assessment years 2007-08 and 2008-09 impugned addition on which penalty u/s 271(1)(c) gets extinguished. Further sub-clause (iii) of section 271(1)(c) provides mechanism for quantification of penalty. It contemplates that the assessee would be directed to pay a sum in addition to taxes, if any, payable him, which shall not be less than but which shall not exceed three times the amount of tax sought to be evaded by reason of concealment of income and furnishing of inaccurate particulars of income. Since basis for visiting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 of Survey No.217/1 and 216/2 admeasuring 2472 square meters (2956 sq.yards) at Chandlodiya was noticed by the AO. As per the said MOU, Shri Amit K. Patel, Shri Narendra R. Patel and the assessee agreed to purchase the said plot of land from and Shri Brijesh S. Patel, Shri Mahendra D. Patel at the rate of ₹ 10,171/- per square yard. As per the statement of Shri Vikas R. Patel recorded during the course of search, an amount of ₹ 2.5 crores in cash was made for the above land dealing. Consequently, the AO taking cognizance of section 153C set the assessment proceedings in motion and notice under section 153C of the Act was issued after recording satisfaction note. In response to that the assessee filed return of income on 24.10.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the AO. 6. We have considered rival contentions and gone through the record and the order of the Tribunal passed in the quantum appeal of the assessee. We find that the ld.AO has taken cognizance of section 153C of the Act in the case of assessee for the assessment years 2007- 08 and 2008-09. The action under section 153C could be taken against the assessee if any material was found during the course of search belonging to the assessee, and in the assessment proceedings of the searched persons, the AO of the searched person is satisfied with material found during the course of search belongs to other person and demonstrate escapement of income. On the basis of that, satisfaction action against other person can be taken in 153C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder for the assessment years 2007-08 and 2008-09 impugned addition on which penalty under section 271(1)(c) of the Act gets extinguished. Further sub-clause (iii) of section 271(1)(c) provides mechanism for quantification of penalty. It contemplates that the assessee would be directed to pay a sum in addition to taxes, if any, payable him, which shall not be less than but which shall not exceed three times the amount of tax sought to be evaded by reason of concealment of income and furnishing of inaccurate particulars of income. In other words, the quantification of the penalty is depended upon addition made to the income of the assessee. Since basis for visiting the assessee with penalty has been extinguished by quashing the assessment or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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