TaxTMI 
TaxTMI 
2026 (3) TMI 1732
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....ill Promoters Pvt. Ltd. Group, in which the assessee was also covered. Pursuant to the search, the jurisdiction of the case was centralized vide order under section 127 of the Act dated 29.11.2019. The case was selected for scrutiny and assessment under section 143(3) was completed on 28.09.2021, determining the total income at Rs. 3,02,28,230/-. During the search, incriminating material indicating cash payments for purchase of agricultural land at Mamidipally village was found and seized. The assessee's father viz., Shri Sarat Gopal Boppana, in his statement recorded under section 132(4) of the Act admitted that cash payments were made by family members, including the assessee, over and above the SRO value. Consequently, the assessee disclosed a sum of Rs.1,23,92,500/- under the Head "Income from other sources" in her return of income. However, the Assessing Officer held that the said income represented unexplained investment under section 69 of the Act and was liable to be taxed under section 115BBE of the Act. Penalty proceedings under section 271AAB were accordingly initiated, and the Assessing Officer ultimately levied a penalty of Rs.74,35,500/- under section 271AAB(1A)(b....
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....icable in the case of the assessee because in the said case the assessee did not file any return of income u/sec.139 of the Act and the addition was made by the Assessing Officer whereas in the case in hand, there is no dispute about the incriminating material found during the course of search and seizure action and undisclosed income declared and offered to tax by the assessee. He has relied upon the Orders of the authorities below. 5. We have considered the rival submissions as well as relevant material on record. There is no dispute that during the course of search and seizure action the transactions of cash payments for purchase of property were detected which were also offered to tax by the assessee in the return of income against which the Assessing Officer has initiated the proceedings for levy of penalty u/sec.271AAB of the Act by issuing show cause notice dated 28.09.2021 which reads as under: 5.1. Thus, it is clear that the Assessing Officer has not specified under which clause of sec.271AAB(1) of the Act the penalty was proposed to be levied in respect of the income offered by the assessee to tax. Sec.271AAB(1A) clause (a) and (b) of the Act contemplates the penalt....
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....provisions get attracted, it is incumbent on the part of the Assessing officer to specify as to under which clause in Section 271AAB (1) of the Act, he intends to proceed against the assessee. In the instant case, in the absence of such material in the penalty notice, it has to be held that the notice is defective. 17. The decisions of the Karnataka High Court in the cases of Manjunatha Cotton and Ginning Factory and SSA's Emerald Meadows and the decision of this Court in the case of Babuji Jacob clearly support our above conclusion. For all the above reasons, we find no grounds to interfere with the common order passed by the Tribunal." 5.2. It is also pertinent to note that in the quantum appeal this Tribunal vide Order dated 27.06.2024 in ITA. No. 696/Hyd./2022 has held in Para nos. 24.6 to 24.9 as under: "24.6. Heard both the parties, perused the material available on record and have gone through the orders of authorities below. There is no dispute with regard to the fact that loose sheets found during the course of search revealed cash payment for purchase of the property by the assessee. In fact, Shri Sarat Gopal Boppana, father of assessee has admitt....
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....the provisions of Section 69 can be invoked whether in the financial year, immediately preceding the assessment year, the assessee has made investments, which are not recorded in the books of accounts, if any, maintained by her from any source of income, and the assessee offers no explanation about the nature and source of investment or the explanation offered by the assessee is satisfactory in the opinion of the Assessing Officer, then the value of the investment may be deemed to be the income of the assessee of such financial year. 24.9. In the present case, the conditions for invoking provisions of section 69 of the Act are not satisfied. Therefore, we have to consider that the Assessing Officer and ld. CIT(A) are erred in invoking the provisions of section 69 r.w.s. 115BBE of the Act, in respect of income declared under the head 'income from other sources'. Thus, we reverse the findings of the Id. CIT(A) and direct the Assessing Officer to assess the income under the head income from other sources' as declared by the assessee." 5.3. Thus, the stand of the Assessing Officer in assessing the income offered by the assessee to tax u/sec.69A r.w.s.115BBE of t....