TaxTMI 
TaxTMI 
2023 (1) TMI 522
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....271 AAB respectively. 2. Both the appeals are disposed of by this common order for the sake of convenience and brevity. 3. We will first address to the appeal of the assessee in ITA No.300/Del/2022. 4. The peculiar facts of the present appeal are that the appellants father Sh. Om Prakash Bansal, appeared before this Bench on 04.01.2023 and pleaded that the assessee is unable to engage any lawyer/ CA to represent his case and, therefore, the Bench asked advocate Sh. Somil Aggarwal to represent the assessee pro bono. 5. Advocate Somil Aggarwal was kind enough to assist the Bench by representing the assessee. Today i.e. 09.01.2023 the Bench heard Mr. Somil Aggarwal at length and the Ld. DR was also heard on rebuttal. 6. The facts emanatin....
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....lenged the levy of interest u/s. 234 B of the Act pleading that since the amount of Rs. 88 lacs was with the income tax department and since the assessee had voluntarily accepted to tax the same u/s. 69A of the Act, therefore, the amount should have been adjusted against the demand by the AO and, therefore, no interest should have been levied from the date of acceptance by the assessee. The CIT(A) did not consider this pleading of the assessee and confirm the levy of interest u/s. 234 B of the Act. 12. Before us the quarrel is only in respect of charging of interest u/s. 234B of the Act. The undisputed fact is that vide email dated 09.11.2020 the assessee made it clear that he wanted to file a revised return to include Rs.88 lacs since the....
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....rtly allowed. 16. We would like to make it clear that our decision is based on the peculiar facts of the appeal in hand and does not set in precedence. 17. Now, we will address ITA No.2748/Del/2022 which relates to the levy of penalty u/s. 271 AAB(1A) of the Act. 18. The facts of the case are that a search and seizure operation u/s. 132 of the Act was conducted in Faquir Chand Lockers & Vaults Pvt. Ltd. Group of cases. Since the locker of the assessee was also there. It was also covered on 01.12.2018 u/s. 132 (1) of the Act. 19. The sum of Rs.88 lacs was found seized and accordingly assessment was completed vide order dated 27.02.2021 u/s. 143 (3) of the Act at an assessed income of Rs.90,65,830/- which included of Rs.88 lacs. 20. The ....
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....such income has been derived; (ii) substantiates the manner in which the undisclosed income was derived; and (iii) on or before the specified date- (A) pays the tax, together with interest, if any, in respect of the undisclosed income; and (B) furnishes the return of income for the specified previous year declaring such undisclosed income therein; (b) a sum computed at the rate of sixty per cent of the undisclosed in income of the specified previous year, if it is not covered under the provisions of clause (a). 5.2 From the record, it is clear that during the search proceedings and the assessment, the assessee has admitted the ownership of an amount of Rs.88,00,000/- found & seized from the said locker, During the assessme....
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....impose penalty u/s 271AAB(1A) of I.T. Act, 1961 of Rs.52,80,000/- (@60% of the undisclosed income). This order has been passed with the prior approval of the Addl. Commissioner of Income Tax, Central Range-05, New Delhi vide letter No Addl.CIT/CR-5/2021 -22/1331 dated 24.03.2022." 21. Representatives of both the sides were heard at length. Case records carefully perused. 22. Provisions of section 271 AAB read as under:- (1) 271 AAB The assessee officer [or the Commissioner of (Appeals) 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 [but before the date on which the Taxation Laws (Second Amendment)....
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....d as in his statement recorded u/s. 131 (1A) on 30.11.2018 response to summon issued on 26.11.2018 the assessee has already surrendered Rs.88 lacs being cash amount in the locker as undisclosed income to be taxed u/s. 69 A of the Act and offered the same for taxation. Therefore, it can be safely concluded that the assessee declared on or before the specified date as per the definition of undisclosed income given in clause C of section 271 AAB (2) of the Act which read as under :- (c) "undisclosed income" means- (i) Any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions foun....