INCOME TAX ACT, 1961

Section 271C

Penalty under section 271(1)(c) - Leviability - No addition to returned income of assessee -

During search in case of certain group incriminating material pertaining to assessee was found and seized b the department. Assessee filed return of income for assessment years 2008-09, 2009-10 and 2010-11 even before department issued notice under section 153C. For remaining two assessment years 2005-06 and 2006-07 also failed within the purview of proceedings under section 153C assessee filed return. Subsequently, in response to notice under section 153C and in none of these years any addition was made over and above the declared income. However, AO levied penalty under section 271(1)(c) relying on Explanation 5A to section 271(1)(c)Held: When there was no addition to the declared income in any of the years, penalty under section 271(1)(c) could not be levied particularly relying on Expln. 5A below section 271(1)(c) which would apply only in case of searched person.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09 to 2010-11

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