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2018 (3) TMI 947 - AT - Income TaxPenalty u/s 271(1)(c)/271AAB - admission of income u/s 132(4) - undisclosed income in respect of the deposits in the name of the employees of the assessee - Held that:- In the assessee’s case, the assessee had admitted the undisclosed income in respect of the deposits of the employees, exemployees in their bank accounts. The assessee admitted the peak deposit in the accounts of employees as his undisclosed income amounting to ₹ 56,74,868/-. At the time of search, the assessee has submitted before the A.O. that the bank accounts are not belonged to the assessee and they were belonged to the employees who opened the accounts and operating the same. However, the assessee had admitted peak deposits u/s 132(4) - A.O. did not make any further enquiries and accepted the admission given by the assessee. Though peak deposits were admitted by the assessee as additional income u/s 132(4) of the Act, the A.O. has not established that the impugned bank accounts were belonged to the assessee, therefore, we hold that there is no undisclosed income in respect of the deposits in the name of the employees of the assessee. - Decided in favour of assessee Unexplained source of acquisition of gold and jewellery - Held that:- On the day of the search and subsequently, the assessee has categorically explained the source of acquisition of gold and jewellery stating that the said gold and jewellery was said to be belonging to his brother’s daughter Miss S. Chandrika and also to his brother’s wife. Though he has admitted the income, the above gold and jewellery required to be examined in the hands of Miss S. Chandrika and Mrs. Sita wife of his brother and his wife for levy of penalty u/s 271AAB. The A.O. stopped his enquiries once the disclosure has been made by the assessee and did not make any further enquiry, therefore, the A.O. has not established that gold and jewellery was acquired from the sources of undisclosed income. As per the provisions of section 271AAB of the Act, the penalty is leviable only on undisclosed income. Thus no case for imposing penalty u/s 271AAB - Decided in favour of assessee
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