https://www.taxtmi.com/caselaws?id=378856 The Tribunal ruled in favor of the assessee, finding the initiation of penalty proceedings under section 271AAB of the IT Act invalid due to defective notices that did not specify the grounds for penalty imposition. Additionally, the Tribunal determined that the levy of penalty under section 271AAB is discretionary, not mandatory, requiring the AO to consider the disclosed income's qualification as undisclosed income before imposing penalties. Specific instances of alleged undisclosed income related to advances for land, excess cash, and excess jewellery were found unsubstantiated, leading to the deletion of the penalties. The appeal was allowed, and the penalties were overturned. en-us Thu, 11 Apr 2019 00:00:00 +0530 Mon, 22 Apr 2019 14:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=378856 The Tribunal ruled in favor of the assessee, finding the initiation of penalty proceedings under section 271AAB of the IT Act invalid due to defective notices that did not specify the grounds for penalty imposition. Additionally, the Tribunal determined that the levy of penalty under section 271AAB is discretionary, not mandatory, requiring the AO to consider the disclosed income's qualification as undisclosed income before imposing penalties. Specific instances of alleged undisclosed income related to advances for land, excess cash, and excess jewellery were found unsubstantiated, leading to the deletion of the penalties. The appeal was allowed, and the penalties were overturned. Case-Laws Income Tax Thu, 11 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=378856