2018 (11) TMI 1636

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..... [ 2018 (6) TMI 1559 - ITAT KOLKATA] squarely applies to the facts of the present case. Hence, we delete the penalty and allow ground of appeal of the assessee.
SHRI N. S SAINI, ACCOUNTANT MEMBER For The Assessee : Shri Devesh Poddar, Adv. For The Revenue : Shri A.K.Mohanty, JCIT ORDER This is an appeal filed by the assessee against the order of the CIT(A)-3, Patna, dated 28.8.2017 for the assessment year 2013-14. 2. The sole issue involved in this appeal is that the CI(A) erred in confirming the levy of penalty u/s.271AAB of the Act of ₹86,000/-. 3, The facts of the case are that the Assessing Officer observed that during the search operation carried out under section 132 of the Act at the premises of Mica Mod Group on 21. .....

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..... Assessing Officer's action as follows : "I find that during the search and seizure operation u/s 132 in this case no evidences regarding concealment/undisclosed income in the form of cash seizure/papers/documents/stock etc were found and seized. Nothing incriminating/no evidences were found regarding ₹ 1 crore which was offered for taxation by the assessee suo moto in order to buy peace of mind. I also find that neither the officers in the investigation wing in the post search investigation nor the Assessing Officer during assessment process found any discriminating evidence of undisclosed income other than the statement of the assessee for making the addition of ₹ 1 crore. Further I find that the AO has levied penalty u/s 2 .....

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..... Representative argued that the Assessing Officer had rightly imposed the impugned penalty in assessee's case @10% of his undisclosed income of ₹ 1 crore coming ₹ 10,00,000 in question. We find no substance in Revenue's instant arguments. We first of all make it clear that section 271AAB of the Act applies in relation to the impugned penalty @10% of the undisclosed income as stood defined in Explanation (c) thereto. There is no material in the case file to indicate that the assessee's undisclosed income represents any money, bullion, jewellery or valuable article or any entry in the books or other documents therein. We make it clear that we are dealing with a penalty provision in tax statute which is to be strictly interpreted. W .....

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