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2023 (9) TMI 1160 - AT - Income TaxPenalty proceedings u/s 271AAB - additional income admitted by the assessee - suo-moto admission by assessee - as assessee contended before the learned CIT(A) that no incriminating material was found during the search and the additional income was admitted to buy peace and to avoid litigation and the same is not a tangible income as the said income has not been credited in its books nor has come out of any incriminating evidence seized during the course of search - HELD THAT:- In this case, from the beginning the assessee has been claiming that only to purchase piece, he has been disclosing additional income. As rightly pointed out by the learned CIT(A), the income disclosed by the assessee is not represented by any of the categories mentioned in clause (c) of explanation to section 271AAB inasmuch as the assessee has never taken any entry of the un-disclosed income in its books nor the same is corroborated to any entry in the books or any incriminating material nor does the same pertaining to any false expenditure claimed by the assessee; and also that the learned Assessing Officer did not bring out anything on record to prove that the surrendered income pertains to any entry in the books of the assessee or to any false expenditure claimed by the assessee. It is also not the case of the Revenue that the assessee admitted the additional income on account of any incriminating material that was unearthed during the course of search. In the circumstances, respectfully following the view taken in the case of Padam Chand Pungliya [2019 (4) TMI 565 - ITAT JAIPUR] we hold that the disclosure of additional income in the statement recorded under section 132(4) of the Act itself is not sufficient to levy penalty u/s 271AAB of the Act until and unless income so disclosed by the assessee falls in the definition of undisclosed income defined in explanation to section 271AAB(1) - Decided in favour of assessee.
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