9911796707
TMI Blog2024 (10) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 132(4) of the Act which may show any kind of admission towards so called undisclosed income. Needless to say, the admission of undisclosed income of alleged undisclosed income (with some further conditions with which, we are not personally concern) is the fulcrum on which action under Section 271AAB(1A) of the Act is based. In the absence of such admission imposition of penalty @ 30% of the so called undisclosed income under clause (a) of Section 271AAB(1A) of the Act is not justified. Besides, the case of the assessee does not fall in the definition of undisclosed income provided in the Explanation appended to Section 271AAB - The assessee claims to be not obligated of law to maintain the books of accounts and the income declared in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per provision of section 153A of the Act. Certain additions of Rs. 2,27,000/- were made under section 50C of the Act and the total income was assessed at Rs. 6,56,42,120/-. While framing the assessment, the Assessing Officer invoked penalty proceeding under Section 271AAB of the Act. The Assessing Officer consequently passed order under Section 271AAB of the Act treating an amount of Rs. 3,20,33,060/- included in the ROI as undisclosed income susceptible to penalty under Section 271AAB of the Act. Consequently, the Assessing Officer imposed penalty @ 30% on the impugned undisclosed income which was quantified at Rs. 96,09,918/-. 3. Aggrieved by the imposition of penalty, assessee preferred the appeal before the Tribunal. 4. The CIT(A) on an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... criminating material found during the search but it was declared in the normal course. The appellant is an individual and does not maintain any books of account. Therefore, any presumption that the appellant would not have disclosed the amount is self serving and baseless. 7.2 I have carefully presumed the penalty order, assessment order and the written submissions filed by the appellant. The undisclosed income as per provisions of section 271AAB is defined as under: (c) Undisclosed income means- (i) any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions found in the course of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Therefore, penalty u/s 271AAB(1A) held to be not sustainable and is deleted. 8. In the result, the appeal is allowed. 5. Aggrieved by the relief granted by the CIT(A), the Revenue is in appeal before the Tribunal. 6. As per the grounds of appeal, the Revenue has challenged the action of the CIT(A) deleting penalty imposed under Section 271AAB of the Act. 7. The learned DR for the Revenue relied upon the penalty order passed by the Assessing Officer and submitted that had the search not taken place, the assessee would not have disclosed the income on account of LTCG and cash transaction declared and included in the return of income. The learned DR thus submitted that the action of the CIT(A) is not justified. 8. The learned Counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for levy of penalty needs to be satisfied. Firstly; there should be existence of undisclosed income and secondly; such income must be offered in the statement recorded under Section 132(4) of the Act. None of these conditions are fulfilled in the instant case. The transactions of LTCG are backed by Contract Note and the transaction has been carried out through banking channel. Thus, such transactions found in the bank statement in ordinary course cannot be regarded as undisclosed income. Therefore, the provision of Section 271AAB of the Act stand ousted. 9. The learned Counsel further adverted to the decision of the Co-ordinate Bench of Tribunal in the case of the wife of the assessee in the matter of DCIT vs. Tanya Jaiswal ITA No.2148/Del/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closed income. Needless to say, the admission of undisclosed income of alleged undisclosed income (with some further conditions with which, we are not personally concern) is the fulcrum on which action under Section 271AAB(1A) of the Act is based. In the absence of such admission imposition of penalty @ 30% of the so called undisclosed income under clause (a) of Section 271AAB(1A) of the Act is not justified. 13. Besides, the case of the assessee does not fall in the definition of undisclosed income provided in the Explanation appended to Section 271AAB of the Act. The assessee claims to be not obligated of law to maintain the books of accounts and the income declared in the return of income arising from entries in respect of LTCG and cash ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
