Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 581 - AT - Income TaxPenalty levied u/s 271AAB(1)(c) or 271AAB(1)(a) - undisclosed income admitted by the assessee on the basis of incriminating documents found in the course of search - assessment completed u/s 153A - penalty u/s 271AAB in the case on hand is to be imposed u/s 271AAB(1)(c) @ 30% of undisclosed income or u/s 271AAB(1)(a) @ 10% of undisclosed income - Held that:- We find that the fact that AO issued notice u/s 153A on 07.10.2014 requiring the assessee to file the return of income within 30 days of receipt of notice (i.e., the specified date) and that the assessee had not complied with the same is not disputed. The assessee filed the return in response to the notice u/s 153A dated 07.10.2014 only on 01.03.2016; i.e., more than a year after the specified date. We also further observe that the taxes in respect of the undisclosed income were also paid long after the specified date i.e., ₹ 32,11,300/- on 30.10.2015; ₹ 5,39,200/- on 17.12.2015 and ₹ 10,00,000/- on 19.02.2016. It is also not disputed by the assessee that the statement wherein Shri. Kiran Kumar Mahasamudram admitted the undisclosed income was not u/s 132(4) of the Act. The provisions of sections 271AAB(1)(a) and 271AAB(1)(b) which provides for imposition of penalty @ 10% and 20% respectively are not applicable. The view of the CIT(A), that even though the assessee had not satisfied the conditions specified in 271AAB(1)(a)(iii) of the Act, the failure to do so constitutes reasonable cause as it was due to conditions beyond the assessee’s control and therefore penalty is to be levied only @ 10% and not 30% of the undisclosed income of ₹ 1,31,50,000/- admitted in this Assessment Year, is totally untenable. Section 271AAB commences with ‘non-obstante clause’ overriding all other provisions of the Act and therefore the CIT(A)’s attempt to read into this unambiguous Section, what is not there by importing discretion in order to reduce the penalty to be levied on the assessee is odious to say the least. We are of the view that the impugned order of the CIT(A) is factually and legally unsustainable and therefore set aside the same. We consequently, restore the order of the AO dated 30.09.2016 levying penalty of ₹ 39,45,000/- u/s 271AAB(1)(c) of the Act @ 30% of the undisclosed income of ₹ 1,31,50,000/- admitted by the assessee for Assessment Year 2013-14. - Decided in favour of revenue.
|