2025 (3) TMI 1871

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....of penalty u/s 271AAB of the Act by the ld. AO, where the ld. AO has not recorded any satisfaction about the undisclosed income or undisclosed books of accounts, documents, money, bullion, jewellery or valuable article or thing even during the course of assessment or levy of penalty. 03. The facts in brief are that the assessee was subjected to search action u/s 132(1) of the Act on 17.08.2014, covering the residential and business premises of Gupta Nutrition Group of cases. The group is engaged in manufacturing and sale of atta, maida, sujji, bran etc. and has been pioneer in establishing flour mills in Bihar. The assessee also belongs to the said group and was also covered in the said section. Accordingly, the notice u/s 142(1) of the ....

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....d the due taxes. Accordingly, the penalty was imposed at the rate of 10% of the undisclosed income of Rs. 86,51,551/-. 04. In the appellate proceedings, the ld. CIT (A) confirmed the penalty by observing and holding as under:- "From the above, it appears that the Ld. AR has not appreciated the word "undisclosed income" which has been duly explained at clause (a) of the explanation to the section 271AAB(1) of the Act. I find that the definition of undisclosed income given under the explanation is broad enough to bring into its fold even any entry in the books of accounts or the documents or transaction found during the course of search which was not disclosed to the income tax department prior to the date of search. Three is also....

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....vied penalty of Rs. 8,65,155/- computed @10% of unexplained income of Rs. 86,51,551/-. The penalty is confirmed. Accordingly, ground no. 1 & 2 are dismissed" 05. After hearing the rival contentions and perusing the materials available on record, we find that in this case the assessee was subjected to search u/s 132(1) of the Act on 07.08.2014. Though, the assessee offered a sum of Rs. 4 crores in all the assessment years, during the course of recording of statement u/s 132(4) of the Act, which was not backed by any incriminating material found during the course of rch. Accordingly, the assessee did not offer the same to tax in the returns of income filed for the various assessment years. We note that the said amount as noted by the ld. A....