TaxTMI 
TaxTMI 
2021 (12) TMI 1283
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.... seizure action u/s. 132(1) of the Income-tax Act, 1961 was conducted on the premises of the assessee on 13.12.2012. During the course of search proceedings assessee made a disclosure of Rs. 45,50,000/-. This was in respect of the profit earned in commodity trading. This profit was not entered in the regular books of account till the date of search. This profit was reflected in the seized documents found at one of the premises of the assessee. This was subsequently disclosed in the return filed in response to notice u/s. 153A of the Act. As the commodity profit was not entered in the books of account but was discovered at the time of search as entries recorded in seized incriminating documents, the AO initiated penalty proceedings u/s. 271A....
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....ent years, the assessee was not aware of the nitty-gritty of the business and therefore, recorded the transactions in a different book other than the regular books of account. According to the Ld. A/R this document was seized and marked by the searched party as SA/1 and the profit disclosed in the same (commodity trading) was Rs. 45,55,000/- which was recorded by the assessee in SA/1 and the assessee showed it in its return of income for AY 2013-14, total of Rs. 63,50,320/- (includes Rs. 45,55,000/- from commodity trading) which was accepted as such by the AO in the assessment order dated 27.03.2015 and the assessee had paid tax on it. Thus, according to the Ld. A/R, the profit from commodity trading was reflected and recorded in the docume....
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....ount or other documents maintained in the normal course relating to such previous year; or (B) otherwise not been disclosed to the [Principal Chief Commissioner or] Chief Commissioner or [Principal Commissioner or] before the date of search; or (ii) any income of the specified previous year represented, either wholly or partly, by any entry in respect of an expense recorded in the books of account or other documents maintained in the normal course relating to the specified previous year which is found to be false and would not have been found to be so had the search not been conducted." 5. According to the Ld. A/R, from the facts and circumstances disclosed above since the assessee was not engaged in the business of com....
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....inition. So, according to him, no penalty u/s. 271AAB of the Act was leviable as per law. 6. We find force in the contention of the assessee. We note that when the search took place on 13.12.2012 in the assessee's premises, the commodity trading which is itself is speculative transaction has been found to be recorded in the 'other document' (seized & marked as SA/1) even though not in the books of account of the assessee, which has been retrieved from the assessee's premises and the assessee during search declared u/s. 132(4) of the Act Rs. 45.50 lakhs (Rs. 45,100/- from commodity trading profit and miscellaneous income of Rs. 4,40,000/-) and filed return of income pursuant to notice u/s. 153A of the Act which includes th....