2011 (12) TMI 541

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..... orders accordingly. Therefore, the cases of the assessees fall exactly within the purview of sub-section (2) of Section 271AAA. Therefore, the provisions contained in sub-section (1) of Section 271AAA are not applicable. The Departmental Authorities have not considered this aspects of the issue and passed the impugned orders. The impugned orders having been made contrary to the provisions contained in Section 271AAA(2), they are not sustainable for legal scrutiny.
K.K. GUPTA, ACCOUNTANT MEMBER AND K.S.S. PRASAD RAO, JUDICIAL MEMBER JJ. DECEMBER 22, 2011 D.K. Seth and M. Seth for the Appellant. Smt. Paramita Tripathy for the Respondent. ORDER 1. All these appeals are filed by the assessees having been aggrieved by the orders of th .....

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..... ng the course of hearing, the learned AR of the assessee has vehemently argued contending inter alia that the notice initiating penalty proceedings against the assessees as issued by the Assessing Officer is very vague as can be seen from the notice copy served on the assesses. Therefore, such notice is invalid and consequently the penalty levied in absence of show cause notice is liable to be cancelled. He relied on the decision of Hon'ble Bombay High Court rendered in the case of CIT v. Smt. Kaushalya [1995] 216 ITR 660. Apart from that the learned AR of the assessee has further contended that the penalty u/s. 271AAA is not automatic. The Assessing Officer has to justify the levy of penalty by establishing the necessary ingredients pr .....

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..... ." 8. In the present cases on hand, it is not the case of the Departmental Authorities that the assessee has not satisfied the manner in which the income is derived and the assessee has not paid the tax with interest on the undisclosed income. Undisputedly the assessees have shown the undisclosed income under the head "income from business" in the returns filed by them and that was accepted by the Department by passing the assessment orders accordingly. Therefore, the cases of the assessees fall exactly within the purview of sub-section (2) of Section 271AAA. Therefore, the provisions contained in sub-section (1) of Section 271AAA are not applicable. The Departmental Authorities have not considered this aspects of the issue .....

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