Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 461 - AT - Income TaxPenalty u/s 271AAB - undisclosed income - statement as recorded u/s. 132(4) - CIT(A) deleted the penalty - HELD THAT:- CIT(A) has nowhere examined the relevant facts qua assessee’s alleged undisclosed income as to whether the same represented any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other document in the light of the foregoing explanation. We also notice that their lordships judgment in Sudarshan Silk Mills [2008 (4) TMI 5 - SUPREME COURT] does not deal with the impugned statutory provision but involved sec.271(1)(c) penalty proceedings only. We therefore reverse the CIT(A)’s lower appellate findings under challenge to this effect in principle. Whether there is any “undisclosed” income involved going by sec. 271AAB Explanation (c) or not? - A perusal of the case file suggests that the assessee’s sec. 132(4) disclosure made during the course of search declared total income involving capital introduced, profit as per P&L account, capital in the name of sundry creditors, profit on sales @ 5%, commodity profit with miscellaneous and other income etc., involving corresponding sum(s). Out of this, the assessee’s books had duly recorded initial capital, sundry creditors and miscellaneous income and the balance amount (involving commodity profits) stood not recorded in the regular books of account u/s. 271AAB explanation- (c)(A) of the Act. Mr. Tulsiyan fails to dispute that this latter undisclosed income component has seen light of the day due to search wherein the corresponding seized documents. AO was very well justified in invoking the impugned penal provision qua the assessee’s undisclosed income of ₹690,69,994/- than the entire disclosure of ₹16,05,25,000/-. Revenue has failed to pin-point any material in the nature of seized documents indicating the remaining three components of initial capital, sundry creditors and miscellaneous income (supra) which could be held to be undisclosed income going by sec.271AAB Explanation (c) AO’s action penalizing the assessee qua the said disclosed / duly recorded income is found to be not sustainable therefore. We have ourselves assumed our jurisdiction of the final fact-finding authority under the provision of the Act to decide upon correctness of impugned entire penalty than remitting the issue back to the AO or the CIT(A) for afresh adjudication. The Assessing Officer is now directed to frame consequential computation of the impugned penalty as per law qua the assessee’s undisclosed income of ₹690,69,994/-only. Ordered accordingly.
|