TaxTMI 
TaxTMI 
2021 (8) TMI 320
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.... the Act, for the assessment year 2014-15 on the following grounds of appeal : The appellant objects to the order of revision of the learned Principal Commissioner of Income-tax on the grounds that, (1) The impugned order is opposed to the law and facts of the case in so far it is prejudicial to the interests of the appellant. (2) The impugned order of revision is invalid and unwarranted in as much as the Assessing Officer had dropped the penalty proceedings after due application of mind and the learned Principal Commissioner of Income-tax has merely substituted his own opinion in exercising jurisdiction under section 263. (3) The learned Principal Commissioner of Income-tax erred in setting aside the pen....
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....sought the assessee came to know that he could have filed appeal before this Tribunal against the order under section 263 of the Act. Thus after making available all the relevant documents to the learned authorised representative, the present appeal was filed on May 23, 2018 thereby causing a delay. It is thus prayed that the delay may be condoned in the interest of justice and the appeal be heard on the merits. 3. We have considered the application for condonation of delay and the affidavit filed by the assessee in support of. We are of the view that the delay in filing the appeal before this Tribunal was due to reasonable cause and therefore the delay in filing the appeal is condoned. Accordingly the application dated June 2, 2018 s....
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....80,15,400 as salary income. Thereafter notice under section 143(2) of the Act was issued and served on the assessee. In response to statutory notices, the assessee appeared before the learned Assessing Officer and filed requisite details as called for. 7. During the assessment proceedings the learned Assessing Officer observed that the assessee was in possession of gold jewellery of 996.64 grams and silver articles of 2,000 grams and the same was valued at Rs. 17,97,326. The learned Assessing Officer in a statement recorded under section 132(4) of the Act recorded that the assessee had not filed wealth- tax returns till the date. After considering various submissions, the learned Assessing Officer added a sum of Rs. 2,42,727 as unexplain....
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.... The learned Principal Commissioner of Income-tax however held that the learned Assessing Officer dropped the penalty proceedings in a mechanical manner without any application of mind. He accordingly set aside the penalty proceedings under section 271AAB for the assessment year 2014-15 to the learned Assessing Officer with a direction to pass the penalty order under section 271AAB after duly considering the observations made by the learned Principal Commissioner of Income-tax in the order passed under section 263 of the Act, and after allowing the assessee adequate opportunity of being heard to make relevant submissions. 11. Aggrieved by the order of the learned Principal Commissioner of Income-tax, the assessee is in appeal before us n....
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.... 14. We note that this Tribunal observed and held as under : "10. We have considered the rival submissions. We find that an identical plea was put forth by the assessee in the case of Shreeji Corporation (supra) and the Ahmedabad Bench of the Tribunal in its order accepted the stand and held as follows : '5. A perusal of the assessment order undisputedly points out that no search had taken place in the case of the assessee per se under section 132 of the Act. A bare reading of law codified in section 271AAB(1) clearly provides that the Assessing Officer may direct the assessee to pay a sum by way of penalty at specified percentage where undisclosed income of the specified previous year has been detected as a result of....
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....alty where search has been initiated" a perusal of the provisions under section 271AAB also talks of the assessee declaring any undisclosed income in the course of the search in the statement under section 132(4). Admittedly in the present case, that is in the case of the assessee-firm in appeal there has been no search. Search admittedly is on the residence of one of the partner of the assessee-firm. Further a perusal of the order of the learned Commissioner of Income-tax (Appeals) also clearly shows that the learned Commissioner of Income-tax (Appeals) has cancelled the penalty on the ground that there was no search in the case of the assessee-firm. The Revenue has not been able to point out as to how this finding of the learned ....