Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 1240 - AT - Income TaxPenalty levied under explanation 5A of section 271(1)(c) - whether the assessee can be visited with the penalty with respect to the income disclosed by him in such proceedings voluntarily? - HELD THAT:- Penalty shall be levied if the assessee in the course of such initiated under section 132 of the Act was found to be the owner of any money, bullion, jewellery or other valuable article or there is some income based on the entry in the books of accounts/documents. Then, it shall be presumed that the assessee has either concealed the particulars of income or furnished inaccurate particulars of income. However in the case on hand, we note that there is no such allegation made by the authorities below as discussed above. Thus, it is transpired that the assessee has disclosed additional income in the return issued under section 153A of the Act voluntarily and without having found any income by the Revenue in the manner provided under explanation 5A to section 271(1)(c) of the Act. As such, there was not found any undisclosed income by the Revenue in the course of such conducted under section 132 of the Act. There cannot be any penalty under explanation 5A to section 271(1)(C) of the Act until and unless it supported on the basis of incriminating document. It is also pertinent to note that the additional was also not disclosed in the statement furnished under section 132(4) of the Act, A query was raised to the Ld. DR whether the income disclosed by the assessee in pursuance to the search was based on the incriminating document, but he failed to bring any material on record. Therefore, in the absence of any documentary evidence, we infer that the assessee additional income offered to tax even without admitting the same in the statement furnished under section 132(4) of the Act cannot be subject to the penalty under explanation 5A to section 271(1)(C) of the Act. Accordingly, we hold that there cannot be any penalty under section 271(1)(C) - Decided in favour of assessee Penalty u/s 271 AAB - HELD THAT:- There was no documentary evidence found by the search team suggesting that there was any undisclosed income of the assessee. As such the income disclosed by the assessee was voluntarily without having found any document in the course of search. We also note that there no reference made by the authorities below to the documents of incriminating nature having bearing on the income of the assessee in their respective orders. The ld. DR has not advanced any arguments against the contentions raised by the ld. AR for the assessee. See M/S. MARVEL ASSOCIATES VERSUS ACIT, CENTRAL CIRCLE-2, VISAKHAPATNAM [2018 (3) TMI 946 - ITAT VISAKHAPATNAM] - we reverse the order of the authorities below and direct the AO to delete the penalty levied by him under section 271 AAB - Decided in favour of assessee.
|