2025 (1) TMI 90

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....erials available on record. The return of income was originally filed for A.Y. 2016-17 u/s. 139(1) of the Act and on 17.10.2016 declaring total income of Rs. 3,89,57,710/-. Pursuant to the search and seizure operation conducted on 29.12.2015, the assessee declared additional income of Rs. 1,50,00,000/- on account of investment in construction / renovation of his H.No. 34/73, Punjabi Bagh, (West), New Delhi and additional income of Rs. 8,82,500/- for cash found and seized during the search. The assessment was completed u/s. 143(3) r.w.s. 153B of the Act on 09.02.2018 declaring total income of Rs. 3,95,46,330/-. The learned AO initiated penalty proceedings u/s. 271AAB of the Act on additional income offered in the total sum of Rs. 1,58,82,500/- pursuant to the search by treating the same to fall within the ambit of "undisclosed income" as defined in section 271AAB of the Act. For this purpose, the ld. AO issued penalty notice dated 09.02.2018 and 02.03.2020. In the said show cause notices, the Ld. AO had not specified under which limb he is initiating the penalty proceedings i.e. whether the penalty proceedings are initiated in accordance with section 271AAB (a) or (b) or (c) of the ....

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.... the case and found that the Assessing Officer ought not to have imposed penalty at 30% and ought to have restricted to 10%. 10. Aggrieved by the order passed by the CIT(A) dated 23.1.2017, the Revenue filed an appeal before the Tribunal. The assessee filed a cross objection reiterating their stand that the notice was vague and consequently, the entire proceedings stood vitiated. The Revenue sought to sustain the order dated 03.2.2016 passed by the Assessing Officer. Ultimately, the Tribunal, by the impugned order, dismissed the appeal filed by the Revenue and allowed the cross objection filed by the assessee. Thus, the Revenue is before us by way of these appeals. 11. The argument of Mr.T.R.Senthilkumar, learned Senior the Revenue is that the notice issued by the Assessing Officer while imposing penalty clearly stated that it was a notice issued under Section 274 read with Section 271AAB of the Act. Therefore, the assessee was aware that he had to face penalty proceedings initiated under Section 271AAB of the Act. That part, the assessee submitted two replies and was also heard in person and thereafter penalty was imposed. Hence, it is submitted that the order pa....

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....n mentioned, the assessee has been denied reasonable opportunity to put forth their submissions. The Tribunal, In paragraph 5 of the impugned order, has verbatim reproduced the penalty notice and we find that the notice is absolutely vague and none of the irrelevant portions had been struck off nor the relevant portions had been marked or indicated. Hence, the Tribunal is right in observing that the penalty could not have been levied based on such defective notice and more particularly, when the assessee has been strenuously canvassing the jurisdictional issue from the inception. 16. In so far as the decision of the Allahabad High Court in the case of Sandeep Chandak is concerned, the factual position is slightly different. This decision is for the principle that where the assessee, in the course of search, makes a statement, in which, he admits the undisclosed income and specifies the manner, in which, such income has been derived, then the provisions of Section 271AAB of the Act would automatically get attracted. There can be no quarrel over this proposition. But, once the provisions get attracted, it is incumbent on the part of the Assessing Officer to specify as to und....

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.... 30.12.2024 ============= Document 1 Το GOVERNMENT OF INDIA / भारत सरकार INCOME-TAX DEPARTMENT / आयकर विभाग कार्यालय आयकर उपायुक्त, केन्द्रीय वृत - 1, न्यू. सी. जी.ओ. कॉम्पलेक्स, एन.आई.टी., फरीदाबाद OFFICE OF THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-I, NEW CGO COMPLEX, NH-IV, NIT, FARIDABAD-121001 [email protected] (0129) 2427229 (Direct)/(Fax) 2413305 दिनांक:- 09.02.2018 फ.सं. आ. उपायुक्त के. वृत 1 / फरीदाबाद / 2017-18/ Sir, NOTICE UNDER SECTION 274 READ WITH SECTION 271AAB OF THE INCOME TAX ACT, ....