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2019 (1) TMI 1208 - AT - Income TaxPenalty u/s 271AAA - income surrendered consequent to search - unexplained cash found at the time of search - Held that:- AO completed the assessment by accepting the return of income filed by the assessee which included surrendered amount of ₹ 51,64,100/-. In fact in the Assessment Order, AO added another sum of ₹ 14,00,000/- as unexplained cash found at the time of search which in the second round after the Tribunal’s order was deleted by the AO whereby accepting this cash belonged to the other entities. This aspect is not denied by the revenue. The initiation of penalty u/s 271AAA in the Assessment order is based on the surrendered amount which cannot be termed as undisclosed income. In fact, by surrendering the said amount, the assessee has disclosed it before the Revenue authorities. The quantum assessment order has nowhere stated that the surrendered amount of ₹ 51,64,100 is an undisclosed income. The surrendered amount was declared in the return of income u/s 153A as misc. income. AO accepted this surrendered amount as misc. income as declared by the assessee in the return of income and levied the income tax on it accordingly. In the present case, even the penalty order is silent on subject of undisclosed income. Therefore, provisions u/s 271AAA will not come under the purview as it is specifically a penalty relating to undisclosed income. - Appeal of the assessee is allowed.
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