TMI Blog2015 (9) TMI 1634X X X X Extracts X X X X X X X X Extracts X X X X ..... l and Shri N. D. Patwa, Adv. ORDER Garasia, This appeal by the Revenue is directed against the order of CIT(A)ii, Indore, dated 01.02.2013 for the assessment year 2006-07. 2. The Revenue has taken the following ground :- On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the penalty u/s 271(1)(c) of ₹ 17,35,000/-. 3. The short facts of the case are as under. 4. The assessee was in possession of ₹ 28 lakhs, returning from Indore to Ahmedabad by a bus when he was checked and interrogated by Police, Chandan Nagar, Indore. He was arrested for alleged offence on 12.12.2008. The sum of ₹ 28 lakhs was seized by Police Department. This amount was handed over by p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose names addresses were given by him and yet AO did not examine them. The deeming provision u/s 69A could be valid basis for addition of unexplained cash in hands of appellant, as cash was found with him, but such assumption could not make him liable for penalty, unless department bring evidence by examination of such parties that cash actually belonged to him. From the facts narrated above, even the AO was of the view that appellant was working as an employee for a meager salary of ₹ 4000/- per month and hence cannot have earned such huge sum. Therefore, levy of penalty in this case, on the addition of cash found, under deeming provision of Sec. 69A of the LT. Act could not be sustained. For this purpose reliance is placed on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p and similar facts were there. In that case, the AO has passed the assessment order ex-parte u/s 144 of the Act and the AO has levied penalty u/s 271(1)(c) of the Act, which was deleted and Tribunal has deleted the penalty by observing as under :- The assessee was right in saying that there could be no concealment of income for a particular year, within the meaning of Section 271(1)(c0, if for that year no return was filed by the assessee. Explanation 5 is applicable to a situation where, in the course of a search under section J 32, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing and the assessee claims that such assets had been acquired by him by utilizing, wholly or in par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose for which they are created and should not be extended beyond their legitimate field. A legal fiction, no doubt, has to be carried to its logical conclusion but, that must be within the framework of the purpose for which it is created. It cannot be carried to an illogical length. One should not allow oneself to be so carried away by a legal fiction as to ignore the words of the very section which introduces it or its content or setting in the statute which contains that section. Also one should not lose sight of the purpose for which the legal fiction was introduced. In view of the facts and circumstances of the case and the legal position discussed above, the order of the Commissioner (Appeals) could not be sustained. The pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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