2015 (4) TMI 664

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....f assessee was conducted on 15-11-2006 and thereafter notice u/s. 153A was issued and in response to which assessee filed her return of income for A.Y. 2006-07 on 28-03-2008 declaring total income of Rs. 14,69,610/- which included additional income of Rs. 5,01,000/- made during the course of search and seizure operation. Thereafter the assessment was framed u/s. 143(3) r.w.s. 153A vide order dated 30-06- 2008 and the total income was determined at Rs. 14,69,610/- being the returned income. On the disclosure of Rs. 5,01,000/- which was made by the assessee, AO vide penalty order dated 22-12-2008 levied penalty of Rs. 1,64,710/- u/s. 271(1)(c) of the Act. Aggrieved by the aforesaid order of the AO, Assessee carried the matter before Ld. CIT(A....

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....rt in Tax Appeal No. 1181, 1182 to 1185 of 2010. He also placed on record the copy of the aforesaid decision of Hon'ble Gujarat High Court. He therefore submitted that in the present case since CIT(A) had followed Special Bench decision of Tribunal which has been overruled by Hob'ble Gujarat High Court, no penalty is leviable in the case of Assessee. Ld. DR on the other hand supported the order of AO and Ld. CIT(A). 6. We have heard the rival submission and perused the material on record. It is an undisputed fact that during the course of search and seizure action a disclosure of Rs. 5,01000/- was made by the Assessee and the same was also included by the assessee in the return of income filed in response to notice under section 153A of th....

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....alty under Section 271(l)(c) of the I.T. Act and the penalty is to be levied on the income assessed over and above the income returned under Section 153A, if any.                14. Further, in the present case, it appears from the record that the assessees had satisfied all the conditions which are required for claiming immunity from payment of penalty under section 271(1) of the Act. The provision does not specify any time limit during which the aforesaid amount i.e. the amount of penalty with interest has to be paid. Admittedly when the assessees herein have paid the entire amount with interest, the Assessing Officer ought to have granted them immunity available under....