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2021 (1) TMI 743 - AT - Income TaxLevy of the penalty u/s. 271AAB - assessment order u/s. 153C - undisclosed income declared by the assessee during the postsurvey proceedings - Assessee argued there was no search in the case of assessee u/s. 132 - HELD THAT:- Applicability of Section 271AAB is integrally connected to search under s.132 of the Act. In the absence of search under s. 132 of the Act, the assessee has no occasion to avail the concessional treatment by way of admission under s.132(4) of the Act. Thus, we find obvious merits in the observations made by the first appellate authority that provisions of Section 271AAB of the Act are not applicable to the case of the assessee. In the absence of search under s.132 of the Act, the consequential or incidental assessment proceedings under s.153C of the Act will not, in our view, entitle the AO to usurp jurisdiction under s.271AAB of the Act for the purposes of imposition of penalty - See Shri Suresh H. Kerudi [2019 (10) TMI 1175 - ITAT BANGALORE]. We are of the view that the penalty in the case of assessee cannot be sustained as the assessee was not a person who was subjected to search u/s. 132 of the Act and consequently the provisions of section 271AAB could not be invoked in his case. - Decided in favour of assessee.
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