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TMI Blog2018 (9) TMI 1742X X X X Extracts X X X X X X X X Extracts X X X X ..... remains unsatisfied. Even otherwise also, if penalty proceedings under section 271AAA of the Act is initiated against a person who is not subjected to search action under section 132(1) the provision itself becomes unworkable as no declaration under section 132(4) of the Act is possible from any person other than the person against whom the search and seizure under section 132(1) is carried out. Thus, in such circumstances, sub–section (2) to section 271AAA of the Act cannot be given effect to. In view of the aforesaid, we agree with the learned Commissioner (Appeals) that initiation of penalty proceedings under section 271AAA of the Act in the instant case is invalid. - Decided in favour of assessee. - ITA no. 1849/Mum/2017 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings for imposition of penalty under section 271AAA of the Act. In response to the show cause notice issued for imposition of penalty under section 271AAA of the Act, though, the assessee filed its explanation on 22nd March 2013, however, the Assessing Officer rejecting the explanation of the assessee proceeded to pass an order on 13th March 2014, imposing penalty of ₹ 74,00,477 under section 271AAA of the Act. Being aggrieved of the penalty order so passed, assessee preferred appeal before the first appellate authority. 4. The learned Commissioner (Appeals) after considering the submissions of the assessee and having found that search and seizure operation under section 132(1) of the Act was not carried out in case of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng penalty proceeding is, a person concerned must have been subjected to a search and seizure operation under section 132(1) of the Act. Undisputedly, in the facts of the present case, no search and seizure operation under section 132(1) of the Act was carried out in case of the assessee. This fact is clearly evident from the initiation and completion of proceedings under section 153C of the Act. Thus, the primary condition of section 271AAA of the Act remains unsatisfied. Even otherwise also, if penalty proceedings under section 271AAA of the Act is initiated against a person who is not subjected to search action under section 132(1) of the Act, the provision itself becomes unworkable as no declaration under section 132(4) of the Act is po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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