TaxTMI 
TaxTMI 
2026 (1) TMI 1409
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing grounds of appeal: 3. The brief facts of the case are that the search and seizure operation under section 132 of the Income Tax Act, 1961 ("the Act") was conducted on 05.10.2018 in the cases of various persons, including the assessee. During the course of the search operation, excess gold jewellery weighing 1390 grams valued at Rs. 40,39,700/- was found from the family of the assessee. The assessee's father, Shri A. Rajeshwar Rao, in his statement recorded under section 132(4) of the Act on 01.12.2018, admitted an amount of Rs. 21 lakhs as income in the hands of the assessee. Subsequently, the assessee filed her return of income for the Assessment Year 2019-20 under section 139(1) of the Act on 31.08.2019 admitting a total income of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd and had duly included the amount in her return of income filed under section 139(1), paying taxes thereon. The Ld. AR submitted that no incriminating material was found during search in relation to the sum of Rs. 21 lakhs. He invited our attention to para nos. 12 to 14 of the Tribunal's consolidated order on the quantum addition in ITA No.176/Hyd/2023 placed at page nos. 77 & 78 of the paper book, wherein this Tribunal recorded a categorical factual finding that no incriminating material was found for the addition of Rs. 21 lakhs, and accordingly directed the Ld. AO to tax the said sum at normal rates. The Ld. AR argued that the levy of penalty under section 271AAB(1A) of the Act presupposes that the income must fall within the definitio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lared by the assessee can be brought to tax, however, the same cannot be taxed at special rate under the provisions of section 115BBE. We, therefore, set aside the order of the learned CIT (A) and direct the Assessing Officer to tax the additional income declared at Rs. 24.00 lakhs under the normal provisions and not under the provisions of section 115BBE. The grounds raised by the assessee are accordingly allowed. 13. In the result, appeal filed by the assessee is allowed. ITA 176/Hyd/2023 - Shri Anne Manoj Chowdary 14. After hearing both the sides, we find the grounds raised by the assessee in the above appeal are identical to the grounds of appeal in ITA 175/Hyd/2023. Here the assessee has challenged the order ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orded 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." 9. On perusal of the above, it is abundantly clear that the definition express....
X X X X Extracts X X X X
X X X X Extracts X X X X
....7 of 2023] wherein it is held that merely because the assessee has admitted an amount to buy peace of mind, bringing the amount of the additional income declared by the respective assessees to tax at higher rate as per the provisions of section 115BBE is not justified especially when no other incriminating material was found, meaning that it is not undisclosed income. 2 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 3 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 274 AAB of the Income Tax Act on the appellant, is absolutely illega....