Penalty not levaible on addition made solely based on declaration

Jethanand Khemchand Luhana Vs DCIT (ITAT Ahmedabad) In the given case the sole grievance of the assessee is in confirming the penalty of Rs.2,22,058/- which was imposed by the AO under section 271(1)(c) of the Income Tax Act, 1961. A perusal of the above Explanation would indicate that this Explanation could be invoked if during the course of search any incriminating material representing any money, bullion, jewellery other valuables articles or things or entry in any books of accounts found during the course of search, based on such material, addition is being made. This Explanation cannot be...