TaxTMI 
TaxTMI 
2018 (10) TMI 1164
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....lty which was levied at 30% of alleged undisclosed income should be restricted to 10% in accordance with clauses (a) of Sub Section(1) to Section 271AAB of the Act. 2. Facts apropos are that there was a search u/s.132A of the Act in the premises of the assessee, who is engaged in steel trading business, on 18.02.2014. As per the ld. Assessing Officer, during the search, it was found that assessee was providing bogus bills to one M/s. BGR Energy Systems Ltd. It seems in the statement recorded u/s.132(4) of the Act at the time of search Managing Director of the assessee admitted receipt of commission of 0.25% on such accommodation bills given by it. Previous year relevant to the impugned assessment year is the year in which search was cond....
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....) of the Act. 4. Aggrieved, assessee moved in appeal before ld. Commissioner of Income Tax (Appeals). As per the assessee, income of A3,22,600/- returned was not based on the search conducted on 18.02.2014, nor based on books or other documents. According to the assessee, there was no books or evidence to show any receipt of commission @0.25%. Contention of the assessee was that it had returned the income to purchase peace from the Department. Main contention of the assessee was that it was an estimated income and not based on any seized material. Assessee also stated that it had co-operated with the Department and paid taxes. As per the assessee, the sum of A.3,22,600/- could not be considered as undisclosed income. 5. However, ld....
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....but filed only after issue of notice u/s.142(1) of the Act. Thus according to him, levy of penalty u/s.271AAB was justified. 8. We have considered the rival contentions and perused the orders of the authorities below. Before adverting to the issue involved, it would be apposite to have a look into Section 271AAB of the Act. The said section is reproduced hereunder:- 1) The Assessing Officer may, notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search has been initiated under section 132 on or after the 1st day of July, 2012, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him,- (a) a sum computed at the rate of ten per cent. of the u....
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....n respect of the undisclosed income referred to in sub-section (1). (3) The provisions of sections 274 and 275 shall, as far as may be, apply in relation to the penalty referred to in this section. Explanation For the purposes of this section,- (a) "specified date" means the due date of furnishing of return of income under sub-section (1) of section 139 or the date on which the period specified in the notice issued under section 153A for furnishing of return of income expires, as the case may be ; (b) "specified previous year" means the previous year- (i) which has ended before the date of search, but the date of furnishing the return of income under sub-section (1) of section 139 for such year h....
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....rch. Here admittedly, assessee was not maintaining any books. There was thus no question of recording any money, bullion, jewellery or any entry in any books. It is not disputed that assessee had not disclosed any receipts from bill trading before the date of search to the Revenue. Assessee had in the statement recorded u/s.132(4) of the Act accepted accommodation bill trading done by it with M/s. BGR Energy Systems Ltd and earning of 0.25% commission. Claim of the assessee is that such commission was accepted for purchasing peace from Department. However, this claim, in our opinion cannot be accepted since there is no alleviating clause in Section 273AAB of the Act. That apart, assessee has not filed its return within the time allowed u....