TaxTMI 
TaxTMI 
2022 (2) TMI 117
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....6/2018-19 dated 31.07.2019 for the impugned AY 2014-15 is contrary to the circumstances of the case and is opposed to the principles of equity, justice and fair play. 2. The Ld. CIT(Appeals) erred in law in levying penalty addition of Rs. 10,00,000/- u/s. 271AAB(1)(b). 3. The 14. CIT (Appeals) erred in law in treating the amount of Rs. 50,00,000/- as an undisclosed income even though the same amount is recorded in the books of accounts of the appellant. 4. The Ld. CIT (Appeals) erred in law erred in treating the income declared by the Appellant in the regular return of Income u/s 41(1) as unexplained cash credit u/s 68 of the Income Tax Act. 5. The Ld.CIT (Appeals) ought to have appreciated the ROC record submitted by the appellant ....
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....aimed to have taken unsecured loan from M/s. Park Field Developers & Builders P.Ltd. as cessation of liability u/s.41(1) of the Income Tax Act, 1961, and treated as income. The Assessing Officer assessed unsecured loan claimed to have received from M/s. Park Field Developers & Builders P.Ltd. for assessment year 2013-14 on the ground that the assessee has failed to prove unsecured loan with necessary evidences. However, levied penalty u/s.271AAB of the Income Tax Act, 1961, for assessment year 2014-15 on the ground that the assessee has admitted undisclosed income and paid taxes and thus, as per provisions of section 271AAB of the Income Tax Act, 1961, penalty shall be leviable, in case undisclosed income is admitted during the course of se....
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....d thus, penalty levied for impugned assessment year cannot survive under law is not correct, because the Assessing Officer has levied penalty u/s.271AAB of the Act, in respect of assessment of income being cessation of liability u/s.41(1) of the Act, for impugned assessment year which warrants levy of penalty in terms of provisions of section 271AAB of the Act. The learned DR further referring to provisions of section 271AAB of the Act, submitted that as per said provision, it is mandatory to levy penalty once there is addition towards undisclosed income consequent to search. In this case, the assessee has admitted undisclosed income after date of search, though same was disclosed in the regular return filed for relevant assessment year. Th....
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....as that although the assessee has treated unsecured loan as cessation of liability and included in the regular return filed for regular assessment year, but said return was filed after the date of search. Therefore, he was of the opinion that unless search took place, the assessee would not have come forward to declare undisclosed income being unsecured loan taken from M/s. Park Field Developers & Builders P.Ltd. 7. We have gone through reasons given by the Assessing Officer in light of arguments of the learned AR for the assessee and we ourselves do not subscribe to the reasons given by the Assessing Officer for simple reason that as per provisions of section 271AAB of the Act, penalty shall be levied, if the assessee admits undisclosed i....