TaxTMI 
TaxTMI 
2017 (6) TMI 1297
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....property and other sources. The assessee was subjected to search & seizure operation u/s 132 of the Income Tax Act, 1961 (hereinafter called as 'the Act') on 20.12.2012. During the course of search & seizure operations, cash was found in the bank locker of the assessee. During the course of search & seizure operation, a statement was recorded on 8.1.2013 and while answering to the statement, the assessee admitted that cash found during the course of search represents professional income earned for the financial year relevant to assessment year 2013-14. The assessee has filed return of income in response to notice issued u/s 153A of the Act, and admitted additional income disclosed during the course of search ....
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....ve complied with all the 3 conditions stipulated in section 271AAB(a) of the Act. 4. The A.O. after considering the explanations of the assessee and also analysis of the provisions of section 271AAB of the Act, observed that the assessee has disclosed undisclosed income of Rs. 30 lakhs towards cash found during the course of search and also admitted such undisclosed income in his return of income filed for the specified previous year. The A.O. further observed that as admitted by the assessee himself, he had not maintained regular books of accounts till the date of search, although the assessee being a professional is obliged u/s 44AA of the Act read with rule 6F of the Income Tax Rules, 1962 to maintain regular books o....
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....cash found during the course of search represents his current year's professional income derived from various services rendered to clients but not undisclosed income. The assessee further submitted that he did not maintain regular books of accounts for the financial year and also for the preceding financial years and he has compiled his professional receipts based on the credits found in the bank statements. Therefore, treating cash found during the course of search as his undisclosed income outside the books of accounts is incorrect. He further submitted that he has explained the manner in which such income has been derived and also included such income in the income tax return filed for the specified previous years and a....
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....income of Rs. 30 lakhs in his statement recorded u/s 132(4) of the Act, and also admitted such income in his return of income filed for the specified previous years and hence, the assessee has complied to the conditions stipulated u/s 271AAB of the Act, accordingly, directed the A.O. to levy penalty of 20% instead of 30% to meet both the ends of justice. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 7. The Ld. A.R. for the assessee submitted that the Ld. CIT(A) is erred in confirming penalty levied by the A.O. u/s 271AAB of the Act, despite the assessee has explained the cash found during the course of search and also specified the manner in which such income has been derived. The A.R. furthe....
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.... leads to imposition of penalty u/s 271AAB of the Act are that during the course of search & seizure operation u/s 132 of the Act, cash of Rs. 30 lakhs was found in the bank locker of the assessee. During the course of search, while recording statement u/s 132(4) of the Act, the assessee admitted cash found during the course of search represents his professional receipts of the financial year relevant to assessment year 2013-14. The A.O. imposed penalty on the ground that if search is not taken place, the assessee would not have disclosed cash found during the course of search. The A.O. further was of the opinion that the explanations offered by the assessee that he would have disclosed the cash as his professional income even n....