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TMI Blog2022 (2) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... h Cessation of liability treated by the assessee towards unsecured loan taken from M/s. Park Field Developers Builders P.Ltd. was not part of disclosure made in the statement recorded under section 132(4) of the Income Tax Act, 1961, nor it was case of the Assessing Officer that said income was disclosed in return of income filed in response to notice issued u/s.153A of the Act as a consequence of search. Penalty cannot be levied u/s.271AAB of the Act, in respect of income disclosed in regular return of income filed by the assessee for relevant assessment year, even though said return has been filed subsequent to date of search, so long as return filed by the assessee was within due date prescribed u/s.139(1) / 139(4) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Ld. CIT (Appeals) erred in law erred in treating the income declared by the Appellant in the regular return of Income u/s 41(1) as unexplained cash credit u/s 68 of the Income Tax Act. 5. The Ld.CIT (Appeals) ought to have appreciated the ROC record submitted by the appellant which proves the existence of creditor company. 6. Ld.CIT(Appeals) was not justified while assessing the income in both the Assessment Years that is in the year of receipt (A.Y.2011-12) and the year in which the income was offered by the Appellant (A.Y.2014-15) and paid tax. Levying penalty twice apart from taxing the same income twice is erroneous untenable and bad in law. 7. The Ld.CIT(Appeals) failed to appreciate that the notice issued by Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AB of the Income Tax Act, 1961, for assessment year 2014-15 on the ground that the assessee has admitted undisclosed income and paid taxes and thus, as per provisions of section 271AAB of the Income Tax Act, 1961, penalty shall be leviable, in case undisclosed income is admitted during the course of search in the statement recorded u/s.132(4) and further paid taxes towards undisclosed income by filing return of income. The assessee carried the matter in appeal before first appellate authority, but could not succeed. The learned CIT(A) for the reasons stated in his appellate order dated 31.07.2019 confirmed penalty levied by the Assessing Officer. Aggrieved by the learned CIT(A) order, the assessee is in appeal before us. 4. The learned A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that as per said provision, it is mandatory to levy penalty once there is addition towards undisclosed income consequent to search. In this case, the assessee has admitted undisclosed income after date of search, though same was disclosed in the regular return filed for relevant assessment year. Therefore, it is incorrect on the part of the learned A.R for the assessee to argue that addition made by the Assessing Officer on which penalty levied u/s.271AAB of the Act, has been deleted and thus, penalty levied by the Assessing Officer cannot survive under law. 6. We have heard both the parties, perused material available on record and gone through orders of the authorities below. Admittedly, additions made by the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh reasons given by the Assessing Officer in light of arguments of the learned AR for the assessee and we ourselves do not subscribe to the reasons given by the Assessing Officer for simple reason that as per provisions of section 271AAB of the Act, penalty shall be levied, if the assessee admits undisclosed income in the statement recorded u/s.132(4) of the Act, and paid relevant taxes in return of income filed consequent to search. In this case, except fact that regular return of income was filed after the date of search there was no adverse finding from the Assessing Officer regarding income offered by the assessee being cessation of liability u/s.41(1) of the Act, that said income is in nature of undisclosed income which was disclosed c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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