Penalty u/s 271(1)(c) is not leviable on additional income...

Penalty u/s 271(1)(c) is not leviable on additional income offered by the assessee in response to a notice issued u/s 148, as held in Kirit Dahyabhai Patel and Ravi Sud cases. Regarding the addition u/s 69 on account of a bank deposit, mere cash deposit cannot be considered the assessee's income. Failure to file an appeal does not imply admission by the assessee. Each addition cannot be the basis for levying a penalty u/s 271(1)(c) unless the Assessing Officer finds that the assessee deliberately furnished inaccurate particulars or concealed income. The assessee contended that the bank account credited with the deposit was shown in the cash book, and the deposit was not unexplained. Considering these facts, no justification exists for levying a penalty, even on the addition. The assessee's appeal is allowed.