TaxTMI 
TaxTMI 
2025 (12) TMI 1357
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....as raised the following grounds of appeal: "1. The order passed by the Ld. CIT(A) is opposed to law, equity, weight of evidences, facts and circumstances of the case and are therefore liable to be quashed. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in not quashing the order of the AO levying penalty u/s 271AAB of the Income Tax Act, is absolutely illegal, arbitrary and ab initio void. 3. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law in not considering the submissions of the appellant that: (i) Initiation of penalty, by the AO without giving any reasons for initiating penalty u/s 271AAB(IA) of the Income Tax Act is bad in law, (ii) Initiation of....
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....ly of the assessee in compliance does not absolve the AO nor cure the defect in the notice issued. (ii) The Ld. CIT(A) further erred in law in holding that no prejudice is caused to the appellant because of not specifying of particular clause which is completely in defiance of the settled legal position which categorically holds that prejudice is on the face of the mechanical methods the Revenue adopts in sending a statutory notice. 6. On the facts and circumstances of the case and in law the Ld. CIT(A) erred in ignoring the finding of hon'ble Tribunal in appellant's own case on quantum appeal [ITA No175 to 177 of 2023] wherein it is held that merely because the assessee has admitted an amount to buy peace of mind, bringing....
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....g section 69A read with section 115BBE of the Act. The assessment was completed under section 143(3) of the Act vide order dated 09.03.2021. The appeal against the quantum addition of Rs. 24 lakhs reached this Tribunal, wherein vide order dated 30.08.2023 in ITA No.176/Hyd/2023, this Tribunal held that section 69A read with section 115BBE of the Act would not apply to the addition of Rs. 24 lakhs and that the said amount was liable to be taxed under normal rate. Thereafter, on the said amount of Rs. 24 lakhs, the Ld. AO initiated penalty proceedings under section 271AAB(1A) of the Act and levied a penalty of Rs. 8,61,120/- vide order dated 27.03.2024. 4. Aggrieved with the penalty order of the Ld. AO, the assessee filed appeal before the....
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....epresentative ("Ld. DR") relied upon the order of the lower authorities and submitted that but for the search, the assessee would not have disclosed the income of Rs. 24 lakhs. It was therefore argued that the income falls within the sweep of "undisclosed income." 7. We have carefully considered the rival submissions and perused the material available on record. We have also gone through para no. 12 of the Tribunal's order in the quantum appeal in ITA No.175/Hyd/2023 placed at page no. 84 of the paper book, which is to the following effect: "12. We, therefore, are of the opinion that merely because the assessee has admitted an amount of Rs. 1.00 crore in his hands and in the hands of various family members to buy peace of mind, ....
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....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 found in the course of a search under 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 re....