2013 (9) TMI 1221 - AT - Income Tax

Summary

Issues involved: Appeal against order of Ld. CIT(A)-II Ahmedabad directing deletion of penalty u/s. 271AAA of the Act.

Summary:
The case involved a search u/s. 132 at the residence of a partner of a firm, leading to disclosure of unaccounted income. The AO levied a penalty of &8377; 5,20,500 u/s. 271AAA for failure to describe the manner in which the income was derived. However, the Ld. CIT(A) deleted the penalty, stating that section 271AAA is applicable only when a search u/s. 132 has been initiated, which was not the case for the appellant firm. The Ld. CIT(A) also noted that the conditions for penalty u/s. 271AAA were not fulfilled. The ITAT upheld the Ld. CIT(A)'s decision, as no search operation u/s. 132 was conducted in the assessee's case, rendering section 271AAA inapplicable. The ITAT dismissed the revenue's appeal, affirming the deletion of the penalty.