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2019 (4) TMI 1518 - ITAT KOLKATAPenalty u/s 271AAB - assessee’s search disclosure amounted to “undisclosed income” within the meaning of section 271AAB Explanation (c) - HELD THAT:- The taxpayer on the other hand strongly supports the CIT(A)’s findings deleting the impugned penalty mainly on the ground that the disclosure in issue was made suo motu without any corroborating material found or seized during the course of search which could form the basis for levying the penalty in issue. We find in this backdrop of facts the instant issue raised at the Revenue’s behest as to whether the impugned sec. 271AAB penalty is automatic or not is no more res integra. see DCIT, CENTRAL CIRCLE-2 (2) , KOLKATA VERSUS AKA LOGISTICS PVT. LTD., AMBEY MINING PVT. LTD., M/S CALCUTTA INDUSTRIAL SUPPLY CORP. [2019 (3) TMI 209 - ITAT KOLKATA] Validity of sec. 271AAB proceedings in a show cause indicating sec. 271(1)(c) action - penalty show cause notice did not specify the specific charge / clause of sec. 271AB - HELD THAT:- Revenue has sufficiently proved right from the beginning that the assessee’s undisclosed income is based on corroborative material found during the course of search relations to impugned assessment year 2013-14 only. Learned coordinate bench has already taken sufficient note of all these judicial precedents in identical backdrop of facts. Hon'ble apex court’s decision in Sandeep Chadak [2018 (6) TMI 106 - SUPREME COURT OF INDIA] has admittedly declined the very argument challenging validity of sec. 271AAB proceedings in a show cause indicating sec. 271(1)(c) action. We do not find any prejudice caused to the assessee once the AO had initiated sec. 271AAB proceedings to the instant lead case Condonation of delay in filing objections 548 days - various procedural formalities and compilation of necessary records - HELD THAT:- The Revenue is fair enough in not disputing correctness of the said condonation averments. We therefore condone the above identical delay in all these cross objection(s). The same are now taken up for adjudication on merits.
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