Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1651 - AT - Income TaxPenalty u/s 271AAB - disclosure of income in his statement u/s 132(4) - as per revenue levy of penalty as mandatory and automatic - HELD THAT:- For saying so we note that if the intention of the Legislature to levy the penalty was mandatory and automatic then the right of appeal u/s 246A would not have been provided for by the Legislature against the order of penalty passed u/s 271AAB. The choice of the expression ‘may’ and not ‘shall’ in the opening Section of 271AAB shows that the Legislature did not intend to make the levy of penalty statutory, automatic and binding on the AO but the AO was given discretion in the matter of levy of penalty. Our foregoing view finds support in the decision of the coordinate Bench of the Tribunal at Vishakhapatnam in the case of ACIT Vs Marvel Associates [2018 (3) TMI 946 - ITAT VISAKHAPATNAM] which inturn relied on Hon’ble Andhra Pradesh High Court ratio in Radha Krishna Vihar [2018 (2) TMI 1595 - TELANGANA AND ANDHRA PRADESH HIGH COURT] We further note that the penalty leviable u/s 271AAB must have necessary and proximate nexus with discovery of ‘undisclosed income’ in the course or as a result of search. The expression ‘undisclosed income’ for the purposes of levy of penalty u/s 271AAB has a definite and specific meaning and the said word or expression does not have any loose or colloquial meaning. Unless and until income offered to tax by an assessee comes within the mischief of undisclosed income and that too of the specified previous year it is not open for the AO to invoke provisions of Section 271AAB - Decided in favour of assessee.
|