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TMI Blog2016 (7) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... r and its substantiation during assessment and hence assessee should not be charged penalty u/s. 271AAA of the I.T. Act. As the assessee filed his income tax return for the assessment year 2009-10 within the time stipulated under section 139 and has disclosed therein all the income earned by him during the previous year 2008-09, therefore, there is no question of penalizing the assessee under section 271AAA of the Income Tax Act, 1961 for non disclosure of income. Hence, the penalty levied by the AO and affirmed by the ld. CIT(A) is not sustainable in the eyes of law. Therefore, penalty deleted. - Decided in favour of assessee - ITA No.3699/Del/2014 - - - Dated:- 13-6-2016 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Assessee : Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d same is not sustainable on various legal and factual grounds. 6. That the appellant craves the leave to add, modify, amend or delete any of the grounds of Appeal at the time of hearing and all the above grounds are without prejudice to each other. 2. The facts in brief are that the assessee was covered under search action u/s. 132 of the Income Tax Act, 1961 (hereinafter referred as the Act) pursuant whereto it filed its return of income for the block period AY 2009-10 declaring a total income of ₹ 41,93,730/- which included an amount of ₹ 35,00,000/- surrendered by the assessee as its undisclosed income in the course of search proceedings. Subsequently, the case was picked up for compulsory scrutiny and the order in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or in M/s Koutons Retail India Ltd. and there was a search in Koutons group u/s 132 of the Income Tax Act, 1961 and assessee was also covered in this search u/s 132. He stated that during the search, cash of ₹ 35,00,000/- was seized from the locker of the assessee which was surrendered as income for the current financial year 2008-09 as income earned from advance received against sale of property. The assessee declared this sum as undisclosed income in the return filed for assessment year 2009-10 which was accepted by the AO while passing the order and returned income is accepted as it is which means that AO is satisfied about the manner and its substantiation during assessment and hence assessee should not be charged penalty u/s. 271 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A). I find that during the search, cash of ₹ 35,00,000/- was seized from the locker of the assessee. The assessee declared this sum as undisclosed income in the return filed for assessment year 2009-10.The assessee had given statement u/s 132(4) of the Act wherein the source of this undisclosed income and substantiated the manner in which this cash was earned. The assessee filed the return in response to notice u/s 153A for AY 2009-10 ₹ 41,93,730/- including ₹ 35,00,000/- as undisclosed income. The said return was assessed u/s 143(3) wherein the returned income of ₹ 41,93,730/- was accepted as it is but AO initiated penalty proceedings u/s 271AAA of the Act in the assessment order for cash seized from locker. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered opinion, it is difficult to comprehend how the assessee can be penalized for non-disclosure of any income when the due date for filing the return of income has not arrived. However, in the instant case the assessee filed his income tax return for the assessment year 2009-10 within the time stipulated under section 139 and has disclosed therein all the income earned by him during the previous year 2008-09, therefore, there is no question of penalizing the assessee under section 271AAA of the Income Tax Act, 1961 for non disclosure of income. Hence, the penalty levied by the AO and affirmed by the ld. CIT(A) is not sustainable in the eyes of law. Therefore, I delete the penalty of ₹ 3,50,000/- levied u/s. 271AAA of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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