2012 (7) TMI 973

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....is filed by the revenue aggrieved by the order of the learned CIT(A)-II, Surat in appeal No. CIT(A)-II/C.3/78/2011-12 dated 20-03-2012 passed u/s 271 (1) (c) r.w.s 250 of the IT Act for assessment year 2008-09. 2. The revenue has raised three grounds in its appeal wherein grounds No.2 and 3 are general in nature. Ground No.1 of the appeal is reproduced herein below for our consideration: ....

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....e assessee carried the matter before the learned CIT(A). The learned CIT(A) deleted the penalty made by the learned AO with the following observations: "6. I have considered the facts of the case, order of the A. O. and the submissions of the appellant. It is seen that the search in the case of the appellant was conducted on 24-09-2008 and that the appellant's case is audited u/s. 44AB of....

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....g of return for which has not expire prior to the date of search and therefore, as per sub section (3) of section 271AAA read with Explanation (b) to 271AAA no penalty can be imposed u/s. 271 (1) (c) of the Act. Further, even clause (b) of Explanation 5A to section 271 (1) ( c ) clearly provides that penalty u/s. 271 (1) (c) shall be levied only in respect of a previous year where the due date of ....

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....here search has been initiated u/s 132 of the Act, on or after 01-06-2007, section 271AAA comes into play while as section 271(1) ( c) is barred by virtue of section 271AAA sub section (3). Section 271AAA sub section (1) and (3) are reproduced herein below for reference: "Penalty where search has been initiated. 271AAA. (1) The Assessing Officer may, notwithstanding anything cont....