Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1196 - ITAT JAIPURPenalty u/s 271AAB - undisclosed investment - HELD THAT:- In M/S SILVER & ART PALACE VERSUS THE DCIT, CENTRAL CIRCLE-4, JAIPUR [2019 (4) TMI 634 - ITAT JAIPUR] held that the undisclosed investment by way of purchase of land can be subject matter of addition in the quantum proceedings but the same does not fall strictly within the meaning of undisclosed income as so defined in section 271AAB and deeming fiction u/s 69B cannot be extended and applied automatically in the context of section 271AAB The fact that the transaction so found recorded in a document has not been disputed by the Revenue. Given that the assessee is a salaried person who is not required to maintain any books of accounts and there is no mechanism to report the investment in the tax return, the said investment cannot be held as undisclosed investment and more so, undisclosed income so defined in section 271AAB. In light of the same, the investment so found in purchase of Villa at Suncity Township at Sikar Road, Jaipur cannot be termed as undisclosed income within the meaning of “undisclosed income” as so defined u/s 271AAB and penalty levied thereon is liable to be set aside. Penalty for cash deposit in bank account - In respect of cash of ₹ 9 lacs, it is not in dispute that the said cash has been physically found in possession of the assessee, however the question remains is where the assessee is a salaried person who is not required to maintain books of accounts, merely having cash in hand of ₹ 9 lacs, can it be held that the same represents his undisclosed income. In the present case, it is true that the assessee is not required to maintain books of accounts and there is no mechanism to report cash in hand in the tax return or otherwise to the Revenue authorities. The factum of the matter is that there is no explanation which has been advanced by the assessee in terms of source of such cash physically found in his possession at the time of search in terms of past savings or cash withdrawals from his bank account. In absence thereof, there can be no dispute that the same falls in the definition of undisclosed income and the penalty levied thereon is sustained. - Appeal of the assessee is partly allowed.
|