TaxTMI 
TaxTMI 
2024 (11) TMI 355
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.... of the learned lower authorities. 06. We have heard the rival contentions and perused the records available on record. The assessee is aggrieved with the levy of under Section 271(1)(c) of the Act of Rs.15,45,000/-. We observe that the assessee which is a private limited company and subjected to search under Section 132 of the Act on 17th March, 2015, was assessed under Section 153A read with section 143(3) of the Act, vide order dated 30th December, 2015. In the return filed in compliance to notice under Section 153A of the Act, assessee made a voluntarily disclosure of Rs.50 lacs and offered it to tax. Perusal of the assessment order placed at page 19 to 21 of the Paper Book, clearly indicates that the learned Assessing Officer has not referred to any incriminating material and the disclosure made by the assessee has been accepted and only an addition for deemed dividend made on the basis of details furnished during the post search scrutiny proceedings. However, the learned Assessing Officer initiated the penalty proceedings under Section 271(1)(c) of the Act for the undisclosed income declared during the course of search and finally vide order dated 29th June, 2017, levied t....
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....he assessee. As no incriminating documents were found during the course of search, therefore, Explanation 5A to section 271(1)(c) is not applicable. Accordingly, we delete the penalty confirmed by ld. CIT (A)." It is undisputed fact that, the no incriminating documents were found during the course of search to prove the concealment of income and the penalty was imposed merely on the basis of income surrendered by the appellant in his statement and shown in the ITR filed u/s 153A of the Act. The income so surrender by the appellant was reported in the return filed u/s 153A which has been accepted without further addition. No incriminating documents are not used to alter the income reported by the appellant or prove the income so surrender by the applicant as real undisclosed income. Therefore, issue is squarely covered with the above citation. 4.5 In view of the above discussions and considering the overall facts and attending circumstances of the appellant's case and with regards to the various juridical pronouncements discussed herein above, I found that it is undisputed fact in this case that the impugned income subjected to the assessment is only income whi....
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....impugned penalty of Rs.15,45,000/- levied under Section 271(1)(c) of the Act is deleted. Effective grounds of appeal raised in ITA No.973/KOL/203 are allowed. Now, we take up ITA No. 974/KOL/2023 (A.Y. 2015-16_ 012. The sole grievance raised is against the imposition of penalty of Rs.5 lacs under Section 271AAB of the Act for A.Y. 2015-16. The learned Assessing Officer levied the impugned penalty under Section 271AAB(1)(a) of the Act at the rate of 10% of the undisclosed income / additional income surrendered by the assessee at Rs.50 lacs. The learned CIT (A) is also confirmed the finding of the learned Assessing Officer. The learned counsel for the assessee referring to the return submission stated that firstly, the learned Assessing Officer failed to raise the specific charge on the assessee as to whether the case of the assessee falls under sub clause (a), (b) or (c) of sub section 1 of Section 271AAB of the Act. He further submitted that section 271AAB of the Act can be invoked only if there is an undisclosed income as defined in clause (c) to explanation to Section 271AAB of the Act. But since, no incriminating material /document or any other item as referred in definiti....
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....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 twenty per cent of the undisclosed income of the specified previous year, if such assessee- (i) in the course of the search, in a statement under sub-section (4) of section-132, does not admit the undisclosed income; and (ii) on or before the specified date- (A) declares such income in the return of income furnished for the specified previous year; and (B) pays the tax, together with interest, if any, in respect of the undisclosed income; (c) a sum computed at the rate of sixty per cent of the undisclosed income of the specified previous year, if it is not covered by the provisions of clauses (a) and (b). (1A) 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 date on which the Taxation Laws (Second Amendment) Bill, ....
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....er section-132, which has- (A) not been recorded on or before the date of search in the books of account 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 Commissioner 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." 015. In the above Section the penalty amount specified at the rate mentioned in Sub clause (a), sub clause (b) and sub clause (c) of Section 271AAB(1) of the Act are to be computed on the undisclosed income. Further, we note that undisclosed income is defined in clause (c) of the explanation to section 271AAB (1) of the Act and the same means any income of the specified previous year represented, either wholly or partly by any money, bullion, jewellery or other v....