2022 (8) TMI 1566

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....closed income under Section 271AAA of the Act can be reduced if the tax together with interest on the undisclosed income as declared by the Assessee in the course of search in a statement under Section 132(4) is partly complied with, with a delay, in the absence of specific period for such compliance specified in the Sub-clause (iii) of Section 271AAA of the Act? 2. Heard Shri Ashok A. Kulkarni, learned advocate for the appellant and Shri K.V. Aravind, learned Senior Standing Counsel for the respondent. 3. Brief facts of the case are, pursuant to a search conducted on November 25, 2010 in assessee's premises, assessment was completed by the DCIT [Deputy Commissioner of Income Tax] on March 15, 2013 accepting the returned income of Rs....

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....losed income as per the explanation contained in Section 271-AAA of the Act. Therefore, it must be held that the machinery section has failed and hence no penalty can be imposed. According to him, strict interpretation of charging section must be followed. 8. Shri Aravind, learned Standing Counsel for the Revenue adverting to Sub-section (2) of Section 271-AAA of the Act submitted that charging section is unambiguous. Nothing contained in Sub-section (1) of Section 271-AAA would apply, if the assessee were to comply with all three conditions under Sub-section (2). Amplifying this contention, he submitted that so far as first condition is concerned, the assessee has admitted the undisclosed income before the DDIT. Therefore, it stands compl....