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2016 (6) TMI 975 - ITAT PUNEPenalty u/s.271(1)(c) - declaration of income recorded u/s.132(4) - Held that:- It is the settled position of law that penalty proceedings and assessment proceedings are separate and distinct. The assessee can advance new arguments during penalty proceedings. We find although the above documents were filed before the lower authorities as certified in the paper book, however, the lower authorities have not commented upon this issue either in the assessment order or penalty order or in the order of CIT(A). We therefore are of the opinion that levy of penalty u/s.271(1)(c) on the amount of ₹ 14 lakhs is not warranted under the facts and circumstances of the case if the cheques are received in A.Y. 2010-11. However, the same needs verification at the level of the AO. The AO shall verify the TDS Certificate and bank statement of the assessee regarding the receipt of the same in A.Y. 2010-11 and if found correct to delete the penalty on the amount of ₹ 14,00,000/-. Since the assessee in the instant case has declared the amount of ₹ 17,00,000/- and ₹ 10,00,000/- respectively on the basis of various discrepancies found in the seized documents during the course of search and the assessee has declared the same in the statement recorded u/s.132(4), therefore we hold that the assessee is liable to penalty u/s.271(1)(c) of the Act for concealing the particulars of his income to the extent of income arising from land business with Mr. Dilip Phadol – ₹ 17 lakhs and profit of unrecorded transaction in Kirana – ₹ 10 lakhs. The argument of Ld. Counsel for the assessee that penalty cannot be levied on estimated addition of income on Kirana is not applicable under the facts and circumstances of the case. The AO is directed to recompute the penalty accordingly - Decided partly in favour of revenue
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