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2016 (7) TMI 1231 - AT - Income TaxPenalty levied u/s 271AAA - undisclosed income - Held that:- There is no dispute with regard to the fact that the assessee has offered in his return of income the undisclosed income of ₹ 4,22,26,000/-. The same are duly recorded by the AO at para 5 of the assessment order. Nowhere in the assessment order, the AO recorded that the assessee was asked to specify or substantiate the manner in which the income has been derived and the assessee has failed to do so. The AO has merely recorded that the total income declared in the return of income for the specified year included the undisclosed income of ₹ 4,22,26,000/- which represented the unexplained money in the form of sundry creditor written off. Thus in this case AO has not correctly applied the provisions of section 271AAA of the Act which cannot be sustained, therefore, AO’s action for levying penalty being 10% of undisclosed income is hereby deleted. - Decided in favour of assessee
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