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2019 (3) TMI 209 - ITAT KOLKATAPenalty u/s 271AAB - additional income disclosures only during the course of search & seizure operation - undisclosed income - 'specified previous year' in terms of sub-clause (i) of clause (b) of Explanation to section 271AAA - meaning of the terms 'date of search ' - additional incomes suo motu and substantiated the manner of having derived the same from various business such as mining, civil construction, transportation and other activities followed by due payments of tax - expression 'before the date of search' in the definition of 'undisclosed income'. HELD THAT:- imposition the impugned penalty u/s 271AAB not automatic - mere issue of notice to impose penalty u/s 271(1)(c) is not sufficient - Assessing Officer had to apply u/s 271AAB Explanations clause (a) to (c). On an analysis of the expression 'before the date of search' in the definition of 'undisclosed income', it amply transpires that it refers to the date of 'initiation of the search'. Our reasoning is that part (A) in clause (i) of the Explanation (a) refers to the undisclosed income etc. which has not been recorded in the books of account before the date of search. It necessarily has to be an income which is not found to be recorded at the time of initiation of search and it cannot be an income which is not found to be recorded at the time of conclusion of search. “Specified previous year” in this case u/s. 271AAB Explanation (b)(ii) squarely applies in given facts and circumstances of the case. We wish to repeat here at the cost of brevity that impugned search is dated 20.12.2012. The assessee’s last date of filing return u/s 139(1) was upto on 30.09.2012. The ‘specified previous year” therefore has been rightly taken in the instant case to be financial year 2012-13 under the above statutory provision. We conclude in these facts that CIT(A) has rightly sustained the impugned penalty of ₹17 lac qua the impugned cash sum declared during the course of search as undisclosed income under Explanation (c) of the Act.
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