2014 (2) TMI 734

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.... the I. T. Act, 1961 of Rs. 72,000/- in A.Y. 2007 - 08 and Rs. 7.50 lacs in A.Y. 2008 - 09. 3. It is submitted by the learned AR of the assessee that the search was conducted in the case of the assessee on 15.10.2008 and therefore, the provisions of Section 271AAA are applicable and as per the provisions of sub section (3) of this section, section 271 (1) (c) are not applicable. Regarding the penalty imposable under sub section (1) of section 271AAA, he submitted that there are exceptions in sub section (2) of this section and if the requirements of this sub section are met, no penalty is to be imposed u/s 271AAA (1) also. He submitted that on this aspect, the matter is covered by two tribunal decisions rendered in group cases for the sa....

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....l pay by way of penalty, in addition to tax, if any, payable by him, a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year.      (2) Nothing contained in sub-section (1) shall apply if the assessee, -          (i) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived;          (ii) substantiates the manner in which the undisclosed income was derived; and          (iii) pays the tax, together with interest, if any, in respect of....

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....er documents maintained in the normal course relating to the specified previous year which is found to be false and would not have been found to be so had the search not been conducted;          (b) "specified previous year" means the previous year -          (i) which has ended before the date of search, but the date of filing the return of income under sub-section (1) of section 139 for such year has not expired before the date of search and the assessee has not furnished the return of income for the previous year before the said date; or          (ii) in which search was conducted.' 6. As per the provisions ....

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....s also expired before the date of search. Moreover, the assessee has also filed his return of income before the date of search because for A.Y. 2007 - 08, the return of income was filed on 05.07.2007 and for A.Y. 2008 - 09, the return of income was filed on 07.07.2008 and both these dates are falling prior to the date of search i.e. 15.10.2008. Hence, none of these two previous years is a specified previous year. Hence, the provisions of section 271AAA (1) are not applicable in these two cases. As a consequence, sub section (2) and (3) of section 271AAA are also not applicable because for their applicability, this is a precondition that section 271AAA (1) is applicable. 8. Since, section 271AAA is not applicable in the present case; the ....