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2017 (6) TMI 1297 - AT - Income TaxPenalty u/s 271AAB - assessee has disclosed undisclosed income towards cash found during the course of search and also admitted such undisclosed income in his return of income filed for the specified previous year - assessee not maintained regular books of accounts till the date of search, although the assessee being a professional is obliged u/s 44AA read with rule 6F of the Income Tax Rules, 1962 to maintain regular books of accounts on day to day basic - HELD THAT:- Assessee has explained cash found during the course of search as his professional income of the current year relevant to assessment year 2013-14. The assessee also specifies the manner in which such income has been derived. We further observed that the assessee is not maintaining regular books of accounts for the current financial year and also for the previous financial years. Had he been maintained books of accounts for the current financial year and not included cash found during the course of search in his books of accounts, then definitely the said cash comes within the purview of undisclosed income of specified previous year as defined u/s 271AAB. Since, the assessee did not maintain regular books of accounts and also the time limit for filing of return of income for the specified year is not expired as on the date of search, the cash found during the course of search cannot be considered as undisclosed income for the purpose of levy of penalty u/s 271AAB. Therefore, the explanations offered by the assessee that he would have disclosed cash found during the course of search as his professional receipts for the year 2013-14, even no search would have been taken place, appears to be reasonable and bonafide. A.O. was erred in imposing penalty u/s 271AAB - direct the A.O. to delete penalty levied u/s 271AAB - Decided in favour of assessee.
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