TaxTMI 
TaxTMI 
TaxTMI 
2014 (10) TMI 905
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....ssee Shri Bidhu Bhusan Tripathy against the order of ld. Commissioner of Income Tax (Appeals)-II, Bhubaneswar in Appeals No. 80 to 86/11-12 dated 18.12.2012 for the assessment years 2003-04 2009-10 against the partial confirmation of penalties under section 271(1)(c) and penalty under section 271AAA of the Act. 3. Shri P.R. Mohanty, Advocate, represented on behalf of the assessee's and Shri K. Ajay Kumar, CIT (D.R.), represented on behalf of the Revenue. 4. ITA Nos.131 to 136/CTK/2013 At the time of hearing, it was submitted by the ld. A.R. that these are penalties levied by the Assessing Officer under the provisions of section 271(1)(c) of the Act. It was the submission that the penalties levied by the Assessing Officer were reduced....
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....Bank interest in respect of the assessee's minor children had also not been offered and the same was added by the Assessing Officer. It was the submission that the assessments as made were accepted and the taxes paid and no appeal was preferred against the assessment for any of the assessment years. It was the submission that consequently penalty under section 271(1)(c) had been initiated to which the assessee had specifically replied that there was no concealment of income and that the assessee was entitled to the benefit of the provisions of Explanation 5 to Section 271(1)(c). It was the submission that on appeal before the ld. CIT (Appeals), ld. CIT (Appeals) had deleted the penalty in respect of the estimated turnover and the estima....
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....se of a search initiated under section 132 on or after the 1st day of June, 2007, the assessee is found to be the owner".This is not the case in the case of the assessee. The survey itself disclosed everything. That survey itself disclosed that the assessee was not maintaining books. The survey itself so found the Fixed Deposits, etc. It was only for the purpose of seizure and further investigation that the survey was converted into a search. The search did not come out with anything fresh. Consequently Explanation 5A to Section 271(1)(c) cannot be made applicable in the case of the assessee herein. It would be the regular provisions of Section 271(1)(c) of the Act, which would be applicable. True the search resulted in the notice under sec....
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....ing provisions of section 64 of the Act. Admittedly the assessee has not been able to substantiate his claim for the cancellation of penalty in respect of the interest income as also the interest income in respect of the minor children added in the hands of the assessee on account of the deeming provisions of section 64 of the Act. In these circumstances, though we may mention here that statutory deduction in respect of the interest income added has not been granted to the assessee in the quantum assessment. Still addition having been made and the assessee being unable to justify the reason for cancellation of the penalty in respect of the interest income as also the income arising from the minor children added in the hands of the assessee ....
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....xplanation. Section 271AAA(4) referred to by the Assessing Officer only says that the provisions of sections 274 & 275 being in respect of the procedure and limitation applies. Even assuming that this is a mistake committed by the Assessing Officer and we go down to the Explanation under section 271AAA the said Explanation (a)(i)(B) referred to is the meaning of undisclosed income. This also does not come to rescue of penalty levied under section 271AAA. The fact also remains that the Assessing Officer has not specified as to which sub-clause of section 271AAA(2) has been violated by the assessee. However, a perusal of the order of the ld. CIT (Appeals) shows that in para 2.1, the ld. CIT (Appeals) has recognized that the statement has been....