2022 (11) TMI 542 - AT - Income Tax
Penalty u/s 271(1)(c) - Defective notice u/s 274 - HELD THAT:- It is pertinent to note that the notice issued under Section 271(1)(c) of the Act has not specified the limb under which penalty was imposed, therefore, the decision of the in case of SSA’s Emerald Meadows [2016 (8) TMI 1145 - SC ORDER] will be applicable in assessee’s case. Besides this on merit the assessee has given the details of income during the proceedings u/s 153A which cannot be stated as the concealment of income or inaccurate furnishing of income. Appeal filed by the assessee is allowed.
Penalty u/s 271AAA - As in the order under Section 271AAA, the Assessing Officer has simplicitery stated that the assessee failed to produce any evidence in support of his claim of business of undisclosed income and therefore, penalty u/s 271AAA will be attracted. It is pertinent to note that the notice issued by the Assessing Officer was not explaining the show-cause u/s 271AAA - assessee’s reply reproduced in order under Section 271AAA explains that notices were issued in respect of Section 271(1)(c) of the Act. Thus, the decision of Hon’ble Apex Court in case of SSA’s Emerald Meadows (Supra) is applicable in present case. Besides this it can be seen from the Assessment Order that the assessee explained the sources of cash receipts during the course of search action under Section 132 which was recorded in statement under Section 132(4) of the Act. During the assessment proceedings, the assessee substantiated the manner in which the said income was derived through confirmations, bank statements, tax credit statements, third party ledger confirmations. So per se, Section 271AAA cannot be invoked in the present case. Thus, order under Section 271AAA related to penalty does not survive. Appeals filed by the assessee are allowed.