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2023 (7) TMI 894 - AT - Income TaxPenalty u/s 271AAB - argument of defective notice - HELD THAT:- Solitary domain of section 271AAB over undisclosed income where the proceedings u/s 132 of the Act is initiated and at the same time it drags out the authorisation of imposition of penalty u/s 270A and 271(1)(c) of the Act as extra-territorial. Keeping aforesaid in mind, we find that, the appellant’s contention that, the aforestated SCN represents the non-application of mind in communicating the exact charge for rebuttal falls like a house of cards on two counts; i) Firstly, the impugned SCN calling upon the appellant to showcase the reasons as to why a penalty u/s 271AAB should not be imposed clearly concluded intimating the consideration of representation before concluding proceedings imposing penalty u/s 271AAB of the Act, as it ostensible from the reproduced text of SCN laid at para 8 hereinbefore. ii) Secondly, the sub-section (2) of section 271AAB intractably expunges the levy of penalty u/s 270A and 271(1)(c), consequently, it communicates the exact charge left i.e. levy of penalty u/s 271AAB(1) for undisclosed income where the proceedings u/s 132 of the Act is carried out. In this context, we heedful to quote that, our aforesaid view finds fortified by the decision of “Sandeep Chandak Vs PCIT” [2018 (6) TMI 106 - SC ORDER] where in similar facts and circumstance their lordship have dismissed the appeal of the assessee and upheld the order of Hon’ble High Court sustaining the penalty imposed u/s 271AAB. Also the order imposing penalty was passed after the receipt of due approval from the Ld. JCIT. However the appellant during the course of physical hearing failed adduce any evidential material showcasing the mechanical approval and further failed to demonstrate the deficiency in the proceedings, for the reason this ground of appeal finds no legs to stand, ergo ordered accordingly. Decided against assessee.
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