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TMI Blog2019 (4) TMI 1833X X X X Extracts X X X X X X X X Extracts X X X X ..... imposing the penalty under section 271AAB of the Act. In the present case it is crystal clear from the penalty order passed by the Assessing Officer that the order was passed on 29/09/2016 while the approval from the Additional CIT, Range Ludhiana was accorded vide letter no. 1036 dt. 30/09/2016, which clearly established that the penalty order was passed by the Assessing Officer on 29/09/2016 before taking the approval from the concerned Additional CIT / J.C.I.T. Therefore the penalty order passed by the Assessing Officer for levying the penalty under section 271AAB of the Act was void abinitio. In that view of the matter the impugned penalty levied u/s 271AAB of the Act by the Assessing Officer and sustained by the Ld. CIT(A) is delete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted undisclosed income of ₹ 2,00,00,000/- under section 132(4) of the Act and the return of income was filed on 07/07/2015. The Assessing Officer initiated the penalty proceedings on the undisclosed income under section 271AAB of the Act, and required the assessee to show cause as to why the penalty under section 271AAB of the Act should not be imposed. In response the assessee submitted as under: It is respectfully submitted that a search u/s 132 of the Income Tax Act, 1961 was conducted at business premises of the group concerns on dated 24.10.2013. During the course of assessment proceedings a detailed reply with respect to income declared / surrender to cover various discrepancies subject to no penal action, added in the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undisclosed income. Accordingly penalty of ₹ 20,00,000/- was levied. 6. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and submitted that penalty was not mandatory as it was the discretion of the Assessing Officer to levy or not to levy the penalty as the legislature used the word may and not shall . It was further stated that the assessee had admitted undisclosed income under section 132(4) of the Act and substantiated the manner of deriving the income and also paid the tax together with interest in respect of undisclosed income before the specified date therefore, the penalty under section 271AAB (1)of the Act was not leviable. Ld. CIT(A) however did not find merit in the submission of the assessee and sust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umber was dt. 30/09/2016. 10. We have considered the submissions of both the parties and perused the material available on the record. To resolve the present controversy it is relevant to refer the provisions contained in Section 274(2) of the Act which read as under: Section 274(1) (2) No order imposing a penalty under this Chapter shall be made- (a) by the Income-tax Officer, where the penalty exceeds ten thousand rupees; (b) by the Assistant Commissioner or Deputy Commissioner, where the penalty exceeds twenty thousand rupees, except with the prior approval of the Joint Commissioner. 11. From the above provisions contained in section 274 of the Act, it is crystal clear that the penalty under section 271A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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