Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 1083 - ITAT JAIPURAddition u/s 271AAB - assessee has disclosed the income after the search - HELD THAT:- When the provisions for levy of penalty under section 271AAB is a specific provision to deal with the undisclosed income and it provides a strict penal action then the corresponding duty of the tax authority is also equally stringent. The AO cannot escape from following the strict mandatory requirement of law and particularly the principle of natural justice. AO has neither specified the grounds and clause of section 271AAB nor has dealt with the same in the impugned order passed under section 271AAB. AO has also not given a finding that the case of the assessee falls in the definition of undisclosed income provided under clause (c)(i) of Explanation to section 271AAB. When the transactions of investment in real estate are recorded in the diary being other documents maintained by the assessee for the said purpose, then in the absence of any requirement of maintaining regular books of accounts by the assessee, the case of the assessee would not fall in the definition of undisclosed income as per clause (c) of Explanation to section 271AAB of the Act. There is clear absence of the satisfaction as to which limb of the penalty exist in this case by the AO in the assessment order and in issuance of notice u/s. 271AAB of the Act to levy the penalty. We have also noted that in the assessment order penalty was initiated for the marriage expenses of the son for which no addition is made and the AO failed to record the satisfaction so as to whether the income disclosed were undisclosed income of the assessee or not the levy of the penalty is unsustainable in law. We see no infirmity in the order of the ld. CIT(A). Based on these observations the appeal filed by the revenue stands dismissed.
|