TaxTMI 
TaxTMI 
2016 (7) TMI 506
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.... 3,50,000/- U/s. 271AAA of the Income Tax Act, 1961. 2. That having regard to facts and circumstances of the case, Ld CIT(A) has relied on incorrect finding of Ld AO. (No explanation offered by assessee and has ignored the submissions made by the assessee before Ld CIT (Appeal) and has accordingly not observed the Principles of natural justice. 3. That having regard to the facts and circumstances of the case, Ld CIT(A) has erred in law and on facts in observing that no evidence with regard to undisclosed income of Rs. 3,50,000/- was given. 4. That having regard to the facts and circumstances of the case, Ld CIT(A) has erred in law and on facts in confirming the action of Ld AO in imposing penalty U/s 271AAA of the Act and more so a....
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....ed hearing and discussions the AO discarded the clarifications offered by the assessee respecting the manner in which the undisclosed income of Rs. 35,00,000/- was earned by the latter. The AO observed that the assessee had failed to provide any details in respect of the manner in which the undisclosed income of Rs. 35,00,000/- surrendered by the assesssee during the course of search was earned by it. On this account alone the AO levied penalty @10% of the amount seized, i.e. Rs. 3,50,000/- u/s. 271AAA of the Act despite the fierce objections of the assessee vide penalty order dated 30.5.2011. 3. Being aggrieved with the aforesaid penalty order, assessee appealed before the Ld. CIT(A), who vide impugned order dated 20.3.2014 has dismisse....
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....e penalty of Rs. 3,50,000/- vide order dated 30-05-2011. It was argued by the assessee's counsel that it is difficult to comprehend how the assessee can be penalized for non-disclosure of any income when the due date for filing the return of income has not arrived. He stated that in the instant case the assessee filed his income tax return for the assessment year 2009-10 within the time stipulated under section 139 and has disclosed therein all the income earned by him during the previous year 2008-09, therefore, there is no question of penalizing the assessee under section 271AAA of the Income Tax Act, 1961 for non disclosure of income. 6. On the contrary, Ld. DR relied upon the orders of the authorities below and stated that the lower ....
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....inst the facts of the case as mentioned above as the assessee had filed detailed reply on 11-04-2011 and has personally attended the proceedings to explain the transaction. But AO ignored all the above explanations and wrongly imposed the penalty of Rs. 3,50,000/- vide order dated 30-05-2011. I find considerable cogency in the assessee's counsel contention that during the search, cash of Rs. 35,00,000/- was seized from the locker of the assessee which was surrendered as income for the current financial year 2008-09 as income earned from advance received against sale of property. The assessee declared this sum as undisclosed income in the return filed for assessment year 2009-10 which was accepted by the AO while passing the order and return....