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2018 (7) TMI 220 - AT - Income TaxPenalty u/s 271AAB - need to maintain the books of account - determination of turnover - unexplained advances - Held that:- When the assessee is not required to maintain the books of account as per section 44AA, then the matter is required to be examined whether the alleged undisclosed income is recorded in the other documents maintained in the normal course as per clause (c) to Explanation to section 271AAB. Undisputedly the alleged income was found recorded in the diary which is nothing but the other record maintained in the normal course, thus the same would not fall in the definition of undisclosed income. Once the said income is found as recorded in the other documents maintained in the normal course, then it cannot be presumed that the assessee would not have disclosed the same in the return of income to be filed after about one year from the date of search. Hence, the penalty levied under section 271AAB is not sustainable and the same is deleted. See Ravi Mathur vs. DCIT [2018 (6) TMI 1128 - ITAT JAIPUR] The amount of advance itself is not in the nature of income though the source of the advances can be added to the income of the assessee. The assessee has explained the source of the said advances from his activities. Accordingly, by following the earlier order of this Tribunal, we delete the penalty levied by the AO under section 271AAB of the Act. - Decided in favour of assessee
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