2021 (2) TMI 1067

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....271(1)(c) of the Income Tax Act, 1961. 2. The ld. AO at the outset stated that additional grounds raised vide ground Nos. 6 & 7 are not pressed. The same is reckoned as a statement made from the Bar and accordingly, the same are hereby dismissed as not pressed. 3. Though the assessee has raised several ground Nos. 1-5 of the original grounds of appeal, we find that the effective issue to be decided in the instant case is whether the penalty u/s.271(1)(c) of the Act could be levied in the year of search instead of section 271AAA of the Act. 3.1. We have heard rival submissions and perused the materials available on record. We find that a search and seizure operation was carried out u/s.132 of the Act in the case of the Phoenix Group....

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....sing 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 June, 2007 [but before the 1st day of July, 2012], the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year . (emphasis supplied by us) (2) Nothing contained in sub-section (1) shall apply if the assessee,- (i) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived; (ii) substantiate....

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.... is found to be false and would not have been found to be so had the search not been conducted; (b) "specified previous year" means the previous year- (i) which has ended before the date of search, but the date of filing the return of income under sub-section (1) of section 139 for such year has not expired before the date of search and the assessee has not furnished the return of income for the previous year before the said date; or (ii) in which search was conducted.]" (emphasis supplied by us) 3.2. From the above provisions, it could be seen that expression "specified previous year" has been duly defined in Section 271AAA of the Act itself which includes year of search. There is absolutely no dispute that....