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2020 (3) TMI 937 - AT - Income TaxPenalty u/s 271AAB - Assessment u/s 153B - Addition u/s 69 r.w.s 115BBE - 30% of undisclosed income of ₹ 10.00 lacs due to the reason that return of income filed by the assessee was belated beyond the time prescribed provided u/s 139(1) - income surrendered by the assessee - HELD THAT:- There is nothing either in the proceedings u/s 132 or in the statement recorded u/s 132(4) of the Act regarding unaccounted expenditure incurred by the assessee on construction of house. There is no mention of the actual construction of the house by the assessee or the timing the construction period or completion of construction work. Even the alleged expenditure not recorded in the books of account is not based on any documentary evidence or even on physical verification of the Electrical items as well as furniture and fixture installed in the house of the assessee. When the said income is not represented by any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions then even if the assessee has surrendered a sum of ₹ 10.00 lacs as unaccounted expenditure, the same would not fall in the ambit of undisclosed income as defined in explanation to Section 271AAB . A bare surrender of income not representing the money, bullion, jewellery or other valuable article or thing or any entry in the books of account will not be regarded as undisclosed income for the purpose of levy of penalty u/s 271AAB. In the case in hand, it is clear from the records that the assessee in his statement recorded u/s 132(4) of the Act has made a surrender of ₹ 10.00 lacs based on said seized materials marked as Annexure A-2 Page 60 to 62 which is Electric Plan and Site Map of the house. Therefore, in the absence of any undisclosed income revealed by said sized materials, the income surrendered by the assessee cannot be said to be undisclosed income for the purpose of Section 271AAB - Hence, when income surrendered by the assessee does not fall in the ambit of undisclosed income as defined in Section 271AAB the same would not attract the levy of penalty u/s 271AAB of the Act. - Decided in favour of assessee.
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