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2019 (11) TMI 1606 - AT - Income TaxPenalty u/s 271AAB - Investigating Officers had found loose documents, which contained entries with regard to the commodity dealings of the appellant - HELD THAT:- In the relevant previous year the appellant had conducted non-systematic trades in commodities and therefore the income derived from such transactions was offered to tax in his return of income under the head "Income from Other Sources". AO has also accepted that such income was assessable under the head 'Other Sources' and assessed it accordingly. In the circumstances when the assessee did not carry on business or profession and was therefore not required to maintain such books of accounts, then he was required to draw up his statement of income with reference to "other documents" maintained by him in regular course. The transactions which yielded income, was maintained in the documents & records which was found & seized by the Investigating Officer and it is from these documents only the AO was able to deduce the true income and expenditure of the assessee. In The documents with reference to which income was assessed in the appellant's hands could not be said to be "incriminating" in nature. The case of the appellant fell within in the second limb i.e. "or other documents" maintained in the normal course relating to the AY 2013-14 as stipulated u/s. 271AAB Explanation (c) (supra) which describes undisclosed income for the purposes of this section. In my considered view therefore the income offered by the appellant not fall in the ambit of "undisclosed income" as defined in Sec. 271AAB. Thus sufficient merit in the contention of the Ld. AR that the entries with reference as found in a regular document maintained in normal course of business and in that view of the matter the 'Sum of Rs.l,99,54,l12/- does not come within the meaning of "undisclosed income" as mentioned in Section 271AAB of the Act. The penalty of ₹ 59,86,234/- levied by the Ld. AO u/s 271AAB is hence cancelled. - Decided in favour of assessee.
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