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2019 (6) TMI 1121 - AT - Income TaxLevy of penalty u/s 271AAB - surrender of income in the statement recorded u/s 132(4) - discrepancy in stock as well as purchase/sale/issue/receipt/approval and other discrepancies as per various annexures prepared during the search - HELD THAT:- AO has levied penalty @10% of the surrendered/undisclosed income thus accepting that the assessee’s case qualified for penalty as per clause(a) of section 271AAB as per which the assessee fulfilled the conditions of admitting to the undisclosed income in the statement recorded u/s 132(4) of the Act, specified the manner in which the income was derived, substantiated the same also and paid all taxes alongwith the interest on the same. The sole reason for levy of penalty therefore is that the surrendered income was in the nature of “undisclosed income” as defined in the section. Admittedly, the surrender had been made on account of discrepancy/shortage in stock. Clearly, this short stock had not been accounted for by the assessee. The same therefore, we hold, has been rightly held to qualify as “undisclosed income” as per the definition of the same in section 271AAB of the Act. Moreover the issue is squarely covered by case of M/s SEL Textiles Limited [2019 (4) TMI 1719 - ITAT CHANDIGARH] wherein identical surrender made on account of the discrepancy in stock was held by the ITAT to qualify as undisclosed income liable to penalty u/s 271AAB of the Act. We uphold the order of the CI T(A) confirming the levy of penalty u/s 271AAB of the Act. - Decided against assessee
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