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2023 (12) TMI 978 - ITAT RAJKOTLevy of penalty u/s 271AAB - assessee has inflated his agricultural income, which would have been otherwise offered under any other head of income - Whether additional income declared in the return of income cannot be termed as “undisclosed income”? - difference between “undisclosed income” or “concealed income” - assessee replied that the addition was made on account of estimation of yield of cotton crops grown during that period, which by no means can be termed as undisclosed income as there is no nexus between additional income declared by the assessee and seized materials by the department - HELD THAT:- A plain reading of the explanation and definition of “undisclosed income” clearly shows that the undisclosed income could be represented money, bullion, jewellery or other valuable articles or things or any unrecorded entry as per documents found or any false entry recorded in the books of accounts, etc. There is no such reference of money, bullion, jewellery or any other items mentioned in the above definition of “undisclosed income” were mentioned either in the assessment order or in the penalty order by the A.O. The assessee’s offer of additional income, which does not amount to undisclosed income as per the above definition. The A.O. has not brought on record any material which points to the “undisclosed income” as defined u/s. 271AAB. Whereas CIT(A) in his order refers to the questions stated in the statements recorded u/s. 132(4) of the Act, namely assessee’s son marriage expenses. In our considered view, any disclosures made in the course of search and statement recorded u/s.132(4) itself cannot be construed as “undisclosed income” as per the definition provided in the Act. There is no incriminating material found by the Revenue on the alleged additional income offered by the assessee. Thus the levy of penalty u/s. 271AAB is against the provisions and inbuilt definition in the Act. Therefore the same is not sustainable in law. We hereby delete the levy of penalty levied u/s. 271AAB(1)(b) - Decided in favour of assessee.
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