2025 (3) TMI 2071

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....Since the facts and the question of law in these two appeals are identical, we find it just and convenient to dispose of the same by way of this common order, taking the facts of the assessment year 2015-16. 2. Brief facts of the case are that the income of the assessee for the assessment year 2015-16 was determined under section 143(3) of the Income Tax Act, 1961 (for short "the Act") by order dated 3/12/2017. A search and seizure operation was carried out on 20/11/2019 in the case of the assessee. Consequent to the search, notice under section 153A of the Act was issued and the assessee furnished the information stating that "gross rental income of Rs. 3,50,000/- has been additionally offered to income in the return of income filed u/s....

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....ion 271AAB(1A) of the Act is altogether different from the nature and degree of proof required under section 271(1)(c) of the Act. Since the assessee was not given an opportunity to meet the requirements under section 271AAB(1A) of the Act, and the notice and proceedings under section 271(1)(c) of the Act culminated in the levy of penalty, the penalty cannot be sustained for want of compliance with the principles of natural justice. 6. Per contra, learned DR referred to the requirements of 271(1)(c) of the Act read with explanation 5A thereof and submitted that since the search initiated under section 132 of the Act in this case after 1/6/2007, provisions under section 271(1)(c) of the Act read with explanation 5A are applicable and inas....