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2020 (12) TMI 211 - AT - Income TaxPenalty u/s 271AAB - assessee had failed to substantiate the manner of having actually derived the undisclosed income during the course of search - Defective notice as per assessee - HELD THAT:- As decided in Smt. Rashmi Jalan [2020 (10) TMI 353 - ITAT KOLKATA] Penalty in question is bad in law as the show-cause notice issued by the Assessing Officer does not specify the charge/s against the assessee for levy of penalty, as required by law. Thus, on this ground, the penalty is quashed. Even otherwise, Section 271AAB of the Act, contemplates imposition of a penalty pursuant to the disclosure of income in statement recorded u/s. 132(4) of the Act by the assessee. It is an admitted fact that no such statement has been recorded from the assessee. Thus, on this ground also, the levy of penalty fails. Nowhere in the assessment order it is stated that undisclosed income has been assessed. The assessment was made u/s. 143(3) of the Act and the returned income was accepted. Thus, for all these reasons, we quash the penalty levied u/s. 271AAB of the Act and allow this appeal of the assessee.
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