Section 153C, 271 of Income Tax Act, 1961—Penalty u/s 271(1)(c)—In the instant  case, revenue challenged the judgment of ITAT on the ground that Tribunal was not justified in deleting the penalty u/s 271(1)(c).

Held that—we find no error in the Tribunal holding that the penalty could not have been imposed. There was no question of the Assessee not declaring the income of the particulars of the income so as to invite penalty under Section 271C of the Act. The three returns had been filed even before issuance of notice under Section 153C of the Act and in other two cases as accepted by the Assessing Officer the Assessee had no taxable income. When there was no addition to the declared income in any of the years, penalty was correctly deleted by the Tribunal. Explanation 5A below Section 271 of the Act would apply only in case of searched person.  [PR COMMISSIONER OF INCOME-TAX (CENTRAL) NAGPUR VERSUS RAJKUMAR GULAB BADGUJAR] [2019] 9 ITCD Online (23) [BOMBAY HIGH COURT]