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Issues involved: Appeal against deletion of penalty u/s 271(1)(c) of the I.T. Act for concealment of income and furnishing inaccurate particulars.
Summary: Issue 1: Deletion of penalty u/s 271(1)(c) of the I.T. Act The appeal arose from the order of CIT(A)-II, Ahmedabad, for assessment year 2007-08. The appellant, after a search and seizure operation, surrendered unaccounted income of Rs. 75,00,000/- but did not disclose the payment and transaction in the books of accounts. The Assessing Officer (A.O.) imposed a penalty of Rs. 24,85,623/- u/s 271(1)(c) of the I.T. Act for concealment of income. However, the CIT(A) allowed the appeal, stating that the appellant had disclosed the income during the search, paid the tax, and the returned income was accepted. Citing relevant case laws, the CIT(A) held that the appellant was entitled to exemption under Explanation 5 to Section 271(1)(c) of the I.T. Act. The revenue's appeal against the deletion of penalty was dismissed by the Tribunal. The Tribunal noted that the return of income was accepted by the A.O., and no additions were made based on the incriminating documents found during the search. The appellant had disclosed Rs. 75,00,000/- u/s 132(4) of the I.T. Act. Considering tangible and intangible assets for disclosure, the Tribunal upheld the CIT(A)'s decision based on the Gujarat High Court's ruling in a similar case. Consequently, the Tribunal confirmed the CIT(A)'s order, dismissing the revenue's appeal. In conclusion, the revenue's appeal against the deletion of penalty u/s 271(1)(c) of the I.T. Act was dismissed by the Tribunal, upholding the CIT(A)'s decision in favor of the appellant.
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