Penalty Unwarranted Without Incriminating Evidence for Unexplained Cash Expenses; Tribunal Upholds Dismissal of Revenue Claims.

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....Penalty u/s 271AAB for unexplained cash commission expenses u/s 69C cannot be imposed if the additional income disclosed by the assessee in the return of income is not corroborated with incriminating material found during the search. The onus is on the Assessing Officer to establish a direct link between the additional income disclosed and the incriminating material found during the search. If the assessee discloses additional income without any incriminating material found during the search, penalty u/s 271AAB cannot be levied. The Commissioner of Income Tax (Appeals) observed that the Assessing Officer failed to produce any seized material to substantiate the finding of bogus long-term capital gains and unexplained cash transactions. The Income Tax Appellate Tribunal agreed with the Commissioner of Income Tax (Appeals) and dismissed the Revenue's grounds.....