https://www.taxtmi.com/caselaws?id=462821 The ITAT Delhi ruled in favor of the assessee regarding penalty under section 271AAB. The assessee had surrendered income from long-term capital gains (LTCG) on equity shares during search proceedings under section 132(4). The Revenue imposed penalty treating this as undisclosed income. The Tribunal held that penalty under section 271AAB can only be levied when surrendered income falls within the definition of "undisclosed income" as per the Explanation to section 271AAB. Mere surrender of income during search proceedings does not automatically constitute undisclosed income. Since the assessee had duly recorded the share transactions in books of account and shown shares in the balance sheet, the seized documents containing LTCG computations were not incriminating material disclosing unrecorded income. The primary condition for treating income as undisclosed - that it was not recorded in books before search - was not satisfied. The penalty was deleted and assessee's appeal was allowed. en-us Fri, 22 Mar 2019 00:00:00 +0530 Fri, 18 Jul 2025 14:02:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462821 The ITAT Delhi ruled in favor of the assessee regarding penalty under section 271AAB. The assessee had surrendered income from long-term capital gains (LTCG) on equity shares during search proceedings under section 132(4). The Revenue imposed penalty treating this as undisclosed income. The Tribunal held that penalty under section 271AAB can only be levied when surrendered income falls within the definition of "undisclosed income" as per the Explanation to section 271AAB. Mere surrender of income during search proceedings does not automatically constitute undisclosed income. Since the assessee had duly recorded the share transactions in books of account and shown shares in the balance sheet, the seized documents containing LTCG computations were not incriminating material disclosing unrecorded income. The primary condition for treating income as undisclosed - that it was not recorded in books before search - was not satisfied. The penalty was deleted and assessee's appeal was allowed. Case-Laws Income Tax Fri, 22 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462821