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2018 (5) TMI 1103 - ITAT PUNEPenalty u/s.271(1)(c) - non specification of charge - Held that:- The manner of initiating and levying of penalty without making reference to the specific limb of clause (c) is unsustained. AO is under obligation to specify the correct limb at the time of initiation as well as at the time of levy of penalty. Therefore, the penalty levied by the AO and confirmed by the CIT(A) is unsustainable on technical grounds. - Decided in favour of assessee Penalty u/s 271AAA - undisclosed investment in jewellery was found during the course of search which was not found recorded in the regular books of accounts - Held that:- Although the appellant had disclosed undisclosed income in the return filed after the search he did not disclose the manner of deriving the undisclosed income hence does not qualify for any immunity in terms of section 271AAA(2). The AO was fully justified in levying the penalty under section 271AAA - We agree with the contention of the appellant that undisclosed income would be only the value of undisclosed investment of ₹ 6,10,000/- found during the search and not ₹ 6,25,000/- offered by the appellant. Accordingly, amount of penalty u/s.271AAA being 10% of undisclosed income of ₹ 6,10,000/- would be ₹ 61,000/-. Penalty levied u/s.271AAA to the extent of ₹ 61,000/- is upheld on account of concealing the particulars of income. Ground raised by the appellant is hereby partly allowed.
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