ITAT cancelled penalty under s271AAB as taxpayer's disclosure of ...

Taxpayer's Voluntary Disclosure of Rs. 50 Lakhs During Search Proceedings Leads to Cancellation of Penalty Under Section 271AAB

February 24, 2025

Case Laws Income Tax AT

ITAT cancelled penalty under s271AAB as taxpayer's disclosure of Rs. 50 lakhs during search proceedings was voluntary and not connected to search findings. While valuables were found in locker 932A, no disclosure was made during locker search statement. Revenue's argument that disclosure occurred only due to search was rejected since Assessing Officer failed to correlate seized documents with the disclosed amount. The voluntary nature of disclosure, unconnected to search materials or discovered assets, meant it could not be classified as undisclosed income warranting penalty. ITAT held penalty was not sustainable as fundamental requirement of connecting disclosed income to search findings was not established.

View Source

← Previous Next →

ITAT cancelled penalty under s271AAB as taxpayer's disclosure of ...

Taxpayer's Voluntary Disclosure of Rs. 50 Lakhs During Search Proceedings Leads to Cancellation of Penalty Under Section 271AAB

February 24, 2025

Case Laws Income Tax AT

You may also like:

The Income Tax Appellate Tribunal allowed the assessee's appeal against the reopening of assessment u/s 148A of the Income Tax Act. The Assessing Officer had alleged...

The assessee paid consideration over Rs. 50 lakh for purchase of property whose stamp duty valuation exceeded Rs. 50 lakh. Though TDS was deducted voluntarily, it was...

Income Tax: Amendment to section 194-IA of Income Tax Act clarifies that for TDS on transfer of immovable property, the consideration shall be aggregate of amounts paid...

Income Tax: To facilitate ease of doing business and reduce compliance burden, it is proposed to amend section 197 to bring section 194Q (tax deduction on purchase of...

Reopening of assessment - Scope of new section/regime u/s 148A - Sense that one gets upon a holistic reading of the backdrop in which the new regime for reopening...

ICAI's Suggestions for Review of Income Tax Act, 1961: Tax Deducted at Source (TDS) prosecution proceedings are appropriate only where deductors deliberately do not...

Appellate Tribunal reduced penalty imposed on company u/s 50 of FERA, 1973 from Rs.2 crores to Rs.2.5 lakhs for contravention regarding two foreign exchange remittances...

The case involved legality of assessment u/s 153A without search or Panchnama. The search warrant named the assessee company, rejecting the objection. No incriminating...

Addition of fixed deposits and interest thereon in wife's name was deleted as the Revenue could not controvert that the deposits belonged to the assessee's wife from her...

Contravention of Sections 8(1) and 9(1)(f)(i) of the Foreign Exchange Regulation Act, 1973 - receiving foreign exchange payments in 1996-97 through fake export documents...

ITAT quashed reassessment proceedings initiated u/s 148 against assessee. There was a difference between reasons communicated in notice u/s 148A(b) alleging bogus...

The ITAT held that the levy of surcharge at 37% on income including interest u/s 234F was incorrect. The maximum marginal rate refers to the income tax rate, including...

Appellant imported fermented and dried processed Sumatra cocoa beans which failed to conform to IS 8865:2003 standards as per FSSAI and BIS testing. Adjudicating...

The Indian Finance Minister's upcoming FY2025-26 Budget presentation focuses on critical fiscal metrics and consolidation targets. The government aims to reduce fiscal...

ITAT upheld assessment beyond limitation period under s.153A as search evidence revealed undisclosed income exceeding Rs. 50 lakhs covering 7th to 10th assessment years....

Quick Updates: