TMI Blog2019 (1) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... ars 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice under Section 153C of the Income Tax Act ( the Act for short) declaring total income of ₹ 60,74,594, ₹ 78,434,31/- and 8,51,910/- respectively. For the remaining two Assessment Years 2005-06 and 2006-07 which would also be within the purview of proceedings under Section 153C of the Act, the Assessee did not file the Returns of Income contending that for the said two Assessment Years the income was below the taxable limit. Subsequently, in response to notice under Section 153C of the Act, the Assessee also filed returns for the said two years declaring total income of ₹ 8,957/- and ₹ 43,857/-. 3. The Assessing Officer completed the assessment under Section 153C of the Act for all the assessment years. Admit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Assessing Officer 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. 7. By virtue of such Explanation it may be open for the Revenue to levy penalty from such a person even in a case where there is no addition to the income declared by the searched person in the return filed pursuant to search. Nevertheless this Section is confined to searched person and cannot be extended to the person other than the searched person. 8. In the result, no question of law arises facts common in all. All the aforesaid appeals are dismissed. - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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