2017 (11) TMI 1875

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....ppellant. JUDGMENT C.V. Nagarjuna Reddy, This Appeal is filed by the Revenue against Order, dated 14-03-2012, in IT(SS)A.No.28/Hyd/2011 on the file of the Income Tax Appellate Tribunal, Bench 'B', Hyderabad (for short 'the Tribunal'), whereby it has set aside the imposition of penalty of Rs. 1.27 Crores under Section 158 BFA(2) of the Income Tax Act, 1961 (for short 't....

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....peration conducted at the premises of the respondent-assessee on 03-01-2002, a notice was issued under Section 158 BC of the Act, in response to which the respondent has filed returns showing its undisclosed income as NIL. In the course of assessment for the block period from 1996-1997 to 2001-2002, huge difference between the number of bottles issued and the number of bottles sold was found. The ....

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.... "A reading of section 158BFA(2) makes it clear that imposition of penalty under this provision is not mandatory in each and every case where undisclosed income has been determined. This provision allows the assessing officer to use his discretion either to impose or not impose penalty after taking into consideration the undisclosed income will not automatically result in imposition of penalty un....