https://www.taxtmi.com/caselaws?id=461005 The ITAT Mumbai held that penalty under Section 271AAB(1) is not automatic or mandatory but requires examination based on facts and circumstances. The AO must issue show cause notice before levying penalty and specify which clause applies. The tribunal found that the confirmed addition did not fall within the definition of undisclosed income as per the explanation to Section 271AAB. The assessee's appeal was allowed, establishing that penalty levy requires proper procedural compliance and factual basis rather than automatic imposition upon income surrender during search proceedings. en-us Wed, 30 Aug 2023 00:00:00 +0530 Thu, 06 Mar 2025 18:58:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461005 The ITAT Mumbai held that penalty under Section 271AAB(1) is not automatic or mandatory but requires examination based on facts and circumstances. The AO must issue show cause notice before levying penalty and specify which clause applies. The tribunal found that the confirmed addition did not fall within the definition of undisclosed income as per the explanation to Section 271AAB. The assessee's appeal was allowed, establishing that penalty levy requires proper procedural compliance and factual basis rather than automatic imposition upon income surrender during search proceedings. Case-Laws Income Tax Wed, 30 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461005