Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1201 - ITAT KOLKATAPenalty u/s 271AAB (1)(c) - assessee admitted undisclosed income which was recorded under statement u/s 132(4) - Held that:- On reading of provisions u/s 271AAB of the Act, it is justified to hold that the assessee shall pay penalty u/s 271AAB @ 10% under clause (a) of subsection (1) of section 271AAB of the Act for the reasons set out hereunder under:-[1]. Search action u/s 132 of the Income Tax Act, 1961 should be initiated u/s 132 on or after 01.06.2012; [2]. The assessee has made disclosure of undisclosed income during the course of search action, has paid the tax together with interest and has filed return of income; and [3]. The assessee substantiates the manner in which he has earned the undisclosed income and in view of the above, the order of CIT(A) is set aside. Ground No-1 raised by the Revenue is partly allowed. Thus, the order of AO is restored to the extent s indicated above. Defective Show-cause notice issued u/s 274 r.w.s 271 - Held that:- On perusal of the said notice, it is observed in the last paragraph that the AO directed the assessee to appear before him on specific date seeking explanation why an order u/s 271AAB of the Act be made? Therefore, in our opinion, the said notice does not appear to be defective and ambiguous as contended by Ld.AR. In the last paragraph of the said notice, the AO clearly mentioned the provision u/s 271AAB of the Act so therefore, it is clear that the AO conveyed on which provision the proceedings are being initiated and the assessee filed reply to the said notice. Therefore, Ground No.2 raised in C.O filed by the assessee fails and it is dismissed. Imposition of penalty @ 30% instead of 10% or 20% - In order to fall under clause (a) of sub-section (1) of section 271AAB of the Act to compute the penalty @ 10%, the assessee has to fulfill the conditions therein. On perusal of the clause (a), the assessee fulfilled all the conditions therein and therefore, penalty shall be @ 10% in terms of clause (a) of sub-section (1) of section 271AAB of the Act. Therefore, the AO is not justified in impose penalty @ 30% vide clause (c). Therefore, the AO is directed in imposing penalty @ 10% under clause (a) of subsection (1) of section 271AAB
|