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2019 (5) TMI 1260 - AT - Income TaxPenalty u/s 271AAA - income surrendered during the course of search & seizure action u/s 132 - recording of satisfaction in the assessment order before initiating penalty - HELD THAT:- We are of the considered view that the CIT (A) has deleted the penalty on the wrong premise that the AO has not recorded his satisfaction in the assessment order itself as to the reasons why he was satisfied that penalty u/s 271AAA should be initiated. Because in the assessment order AO sought to initiate the penalty proceedings u/s 271AAA qua the surrendered amount during search operation which is in accordance with the provisions contained in the section. Even otherwise, all the conditions laid down to initiate the penalty proceedings u/s 271AAA are complete as discussed in the preceding paras. Failure to substantiate the manner in which the undisclosed income as derived and liability to penalized as required u/s 271AAA(2) - In the instant case, instead of complying with the provisions laid down u/s 271AAA (2) to specify the manner in which the surrendered income has been derived and to substantiate the manner in which the undisclosed income was derived, assessee merely harped upon his statement that the surrender is being made to buy peace and to avoid litigation with the Department in the spirit of cooperation, to avail of the escape route from the penalty under sub-section (2) of section 271AAA. So, when the assessee has failed to specify the manner and substantiate the manner in which the undisclosed income was derived rather embark upon the mercy plea that he is making surrender to buy peace of mind and avoid litigation, he is not entitled for the benefit of section 271AAA(2) of the Act. Following the decision rendered in case cited as Pr.CIT vs. Smt. Ritu Singal [2018 (3) TMI 593 - DELHI HIGH COURT] we are of the considered view that ld. CIT (A) has erred in deleting the penalty u/s 271AAA, hence appeal filed by the Revenue is hereby allowed and penalty order passed by the AO is restored. - Decided in favour of revenue
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