2022 (9) TMI 336

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.... 2. The solitary grievance of the Revenue is that the Ld. CIT (Appeals) has erred in deleting the penalty levied under section 271AAB of the Income Tax Act, 1961. 3. Brief facts of the case as emerging out from the assessment order are that the assessee belongs to "THE HIND ENERGY GROUP OF COMPANIES", where a search was conducted under section 132(1) of the Income Tax Act on 27.03.2015. Incriminating material belonging to the assessee was found and, therefore, notice under section 153C of the Income Tax Act was issued and served upon the assessee. In response to the notice, the assessee has filed its return of income under section 153C on 26.12.2016 declaring total income at Rs. 1,25,82,290/-. An assessment order was passed on 31.12.2016....

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....nt and heard the appeal with the assistance of Ld. D.R. 7. On due consideration of the facts and circumstances, we do not find any merit in this appeal because the opening line of section 271AAB contemplates that there should be a search for invoking this provision. For the facility of reference, we take note the relevant provision, which reads as under:- "271AAB: (1) The Assessing 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 July, 2012, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him,- (a) a sum computed at the rate of ten percent of the undiscl....

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....he Ld. Assessing Officer of other person would issue notice under section 153C. Therefore, sections 153A and 153C deal with two different categories of assessees. The penalty leviable under section 271AAB is with respect to those assessees where search has been conducted. The case of the present assessee falls under second category. The assessment was made under section 153C of the Income Tax Act. We fail to understand from where the Ld. Assessing Officer has brought this statement of disclosure. Statement under section 132(4) is to be recorded during the course of search to find out, whether any declaration is to be made by an assessee or not. The next fatuous attempt at the end of Ld. Assessing Officer is that taxable income determined by....