Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1591 - AT - Income TaxPenalty levied u/s 271AAA - undisclosed income - assessee had failed to furnish details as to the source of earning such additional income - rejection of assessee's contention of assessee that additional income was on account of under-valuation of stock and there were no changes in purchases, hence no merit in levy of penalty - Held that:- The additional income had been offered by the assessee on account of valuation of stock. It is not case of the Department that any unaccounted stock was found during the course of search or any entry was found in any document or transaction or the books of account, during the course of search, which depicts the said stock. The assessee on the other hand, had not modified the quantity of stock but had declared additional income on account of valuation of stock, which had been recorded in books of account. Such disclosure made by assessee in the return of income filed for the search year was not on account of any surrender made at the time of assessment and at best was additional income offered on appraisal of totality of facts of the case. The basic condition of additional income being offered on the basis of seized document during the course of search had not been fulfilled in the present case. We find support from the ratio laid down by the Delhi Bench of Tribunal in Mahavir Prasad Jaipuria Vs. ACIT [2017 (10) TMI 875 - ITAT DELHI] wherein it was held that where the amount was not surrendered at the time of search but was surrendered subsequently during course of assessment proceedings; as per specific provisions of section 271AAA of the Act, said amount did not specifically fall under definition of ‘undisclosed income’ found during course of search, thus, levy of penalty was not justified. - Decided in favour of assessee.
|