TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 636
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....osed u/s. 271AAB(c) of the Income Tax Act, 1961 by holding that the amount of Rs. 6,62,65,239/- would not fall in the definition of 'undisclosed income' by ignoring the fact that the assessee has itself disclosed additional income during the course of search. 2. The appellant craves leave to add, amend, modify, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of the appeal. 2. At the time of hearing, the ld. AR submitted that the issue is fully covered in his favour and the appeal of the Revenue may be dismissed. Examining the submission he was required to demonstrate the correctness of the statement from the facts on record. In response thereto, the ld. AR submitted tha....
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....apers & assets have been found & seized by the respective Authorized Officers & the department has pointed out certain discrepancies to us. The petitioners in a keen desire to purchase peace of mind and to avoid litigation & multiplicity of proceedings, hereby offer a sum of Rs. 80,00,00,000/- (Rupees Eighty Crores Only) as additional income over & above the books results, to cover various discrepancies such as cash, stock, assets deductions, disallowable expenses etc. Detailed bifurcation shall be submitted after looking into the entire seized documents in due course of time. The above declaration is made voluntarily without any pressure and has made in the presence of my counsel. It is also mentioned that the above declaration is for al....
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....tter that the surrender was made u/s. 14A for A.Y. 2013-14 and the head under which this amount was offered was disclosed later by the assessee. Even if the disclosure for the year under consideration relates to section 14A still it would fall under provisions of section 271AAB(3)(c)(ii) as it would be disclosure of the expenditure in relation to income not includible in the total income by the assessee and the assessee would not have surrendered the amount related to expenses under section 14A if the search would not have been conducted. 9. Thus, the replies of the assessee are not found acceptable. As brought out in the as assessment order, it is very clear that the assessee has made disclosure only after search proceedings were initiat....
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....sion that the departmental appeal may be dismissed. 5. We have gone through the material available on record. For the sake of clarity and completeness, we deem it necessary to extract the relevant finding which is under challenge in the present proceedings: 4.1 Ground of Appeal No. 1 relates to imposition of penalty amounting to Rs. 1,98,79,572/-. The appellant is aggrieved against the order of the AO imposing penalty u/s. 271AAB. The AO has mentioned that a search u/s. 132 was conducted in this case on 11.09.2013 and notice u/s. 153A(1) was issued on 24.03.2014 but the assessee did not file return. Ultimately, the return was filed on 26.02.2015 declaring loss of Rs. 37,73,25,403/- including Rs. 6,62,65,239/- as additional income declare....
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....g penalty @ 30%. Thus, a penalty of Rs. 1,98,79,572/- was levied u/s. 271AAB. The facts of the case, the basis of penalty imposed by the AO and the arguments of the AR during the course of appellate proceedings have been considered. The AR has submitted that the amount under consideration for levy of penalty is the disallowance u/s. 14A offered after making statement u/s. 132(4). As per the AR, the appellate made a disallowance of Rs. 6,62,65,239/- while filing the return and during the assessment vide letter dated 23.03.2016, had information the AO that due to change in legal position with respect to disallowance u/s. 14A, there was no amount which fall within the ambit of Section 14A and prayed that the return be deemed to have been rev....