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2018 (10) TMI 1164 - AT - Income TaxLevy of penalty u/s.271AAB - filing of return declaring undisclosed income - Delay in filing return income - Held that:- For an income to be undisclosed, it should be represented either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books, which was not recorded in the books before the date of search. Here admittedly, assessee was not maintaining any books. There was thus no question of recording any money, bullion, jewellery or any entry in any books. It is not disputed that assessee had not disclosed any receipts from bill trading before the date of search to the Revenue. Assessee had in the statement recorded u/s.132(4) of the Act accepted accommodation bill trading done by it with M/s. BGR Energy Systems Ltd and earning of 0.25% commission. Claim of the assessee is that such commission was accepted for purchasing peace from Department. This claim, in our opinion cannot be accepted since there is no alleviating clause in Section 273AAB of the Act. That apart, assessee has not filed its return within the time allowed u/s.139(1) of the Act but only after issue of notice u/s.142(1). Thus what was returned by the assessee fell within the definition of the term "undisclosed income" coming under Explanation (c) to Section 271AAB. As to the contention of the assessee that, if at all penalty is levied u/s. 271AAB then such levy should be under clause (a) of Sub Section (1), what we find is that for applying the said clause, it is a necessary pre-condition that assessee should have furnished the return of income before the specified date. Specified date is the due date for furnishing returned income u/s.139(1). Assessee had filed returned income after such date. Hence, assessee cannot take advantage of clause (a) of Sub Section(1) of Section 271AAB. Penalty was rightly levied and confirmed by the CIT (Appeals). - Decided against assessee.
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