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2019 (6) TMI 143 - AT - Income TaxPenalty proceedings u/s 271AAA - undisclosed income - Notice was issued initiating penalty proceedings u/s 274 r.w.s. 271AAA of the Act and the penalty imposed thereon u/s 271AAB - AR submitted that at the time of search & seizure operation, no incriminating documents were seized and the transactions were recorded in the books and argued that there was no concealment of income by the assessee - HELD THAT:- As decided in GANPATI INDUSTRIAL PVT. LTD., JEKAY INTERNATIONAL PVT. LTD. VERSUS DCIT, CIRCLE-4 (2) , KOLKATA [2019 (2) TMI 1631 - ITAT KOLKATA] there is no dispute regarding the payment of tax together with interest in respect of such undisclosed income and the specified date of filing return of income. So, therefore, it is clear from the record that the assessee admitted undisclosed income and the statement was recorded u/s 132(4) of the Act to that effect. The assessee also explained the manner of such earning i.e. out of commodity profit in AO’s order. In our opinion, the assessee is liable to pay penalty as the facts and circumstances of the present case fulfilled the conditions that required to attract penalty @ 10% in terms of clause (a) of sub-section (1) of section 271AAB The Hon’ble Supreme Court has upheld the above judgement and is reported as Sandeep Chandak vs Pr.CIT [2018 (6) TMI 106 - SC ORDER] pleased to hold that the provisions of Section 271AAB automatically attracts and the proceedings are to be carried out/completed where a search and seizure operation is carried out in which the assessee have surrendered the amount u/s 132(4) statement of undisclosed income, specify the manner in which this income was derived, filed return of income, admit the same and had paid taxes and interest on the same. No infirmity in the order of CIT(A) and it is justified. Thus, ground no-1 raised by the assessee is dismissed.
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