Feedback   New User   Subscription   Demo   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

The Asst. Commissioner of Income Tax, Central Circle, Kolhapur Versus D.M. Corporation Pvt. Ltd.

2018 (2) TMI 974 - ITAT PUNE

Penalty u/s 271AAA - assessee offered additional income during search - Held that:- Penalty under section 271AAA of the Act can be levied only for the ‘specified previous year’ which is clearly defined by Explanation (b) to section and is limited to the said assessment years only. - In the present case, search on the premises of assessee was carried out on 25.08.2011 and hence, the year of search is assessment year 2012-13. The years which are in appeal before us are relate to assessment yea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arch and the time limit prescribed under section 139(1) of the Act had already expired. - Thus we hold that where the assessee though during the course of search had offered additional income, which was declared in the return of income in response to notice under section 153A of the Act; however, in view of specific definition of ‘specified previous year’, the rigours of section 271AAA of the Act are not attracted for assessment years 2006-07 to 2010-11. Accordingly, we hold so. Thus, the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ceedings under section 271AAA and / or 271(1)(c) of the Act, clear satisfaction has to be recorded by Assessing Officer as to which section is attracted in the facts of case. Sub-section (3) to section 271AAA of the Act very clearly provides that no penalty under the provisions of section 271(1)(c) of the Act shall be imposed upon assessee, in respect of undisclosed income which is referred to in sub-section (1) to section 271AAA of the Act. Once the Assessing Officer has taken the step of initi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ondent : S/Shri Nikhil Pathak /Sushant Phadnis ORDER PER SUSHMA CHOWLA, JM: This bunch of five appeals filed by the Revenue are against consolidated order of CIT(A), Pune-11, dated 27.11.2015 relating to assessment years 2006-07 to 2010-11 against deletion of penalty under section 271AAA of the Income-tax Act, 1961 (in short the Act ). 2. This bunch of five appeals relating to the same assessee for different assessment years on similar issue were heard together and are being disposed of by this .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

) where the intention for initiating penalty by the AO was for concealment. 2) On the facts and the circumstances of the case and in law, the Ld. CIT(A) failed to exercise his coterminous powers with the AO and initiate the correct penalty and levy the same or give directions accordingly. 3) The order of the Ld. CIT(A) may be vacated and the Assessing Officer be restored. 4. The issue raised in the present appeal is against order of CIT(A) in deleting penalty levied under section 271AAA of the A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

chandra Maruti Mohite on 25.08.2011. The assessee was one of the group members and was also covered under the search. The Assessing Officer issued notice under section 153A(a) of the Act, in response to which the assessee filed the return of income declaring Nil income. The assessee declared the gross total income of ₹ 3,83,83,761/-, on which it claimed deduction under Chapter VI-A under section 80IA(4) of the Act at ₹ 3.83 crores and furnished the return of income at Nil. The Assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

02.03.2015 holding the assessee to be eligible for levy of penalty under section 271AAA of the Act on the disclosure amounting to ₹ 2 crores on account of unaccounted payment of wages, which was treated as undisclosed income found because of the search operations carried out under section 132 of the Act. The Assessing Officer levied penalty of ₹ 22,44,000/- being 10% of taxes under section 271AAA of the Act. 6. The CIT(A) vide consolidated order for assessment years 2006-07 to 2012-1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-07 to 2011-12. However, in respect of assessment year 2012-13, the CIT(A) confirmed levy of penalty under section 271AAA of the Act. 7. The Revenue is in appeal against the order of CIT(A) relating to assessment years 2006-07 to 2010-11. 8. The learned Authorized Representative for the assessee at the outset raised a legal plea that penalty for the aforesaid assessment years is not leviable as these are not specified previous years. He referred to the definition of specified previous year under .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ave in alternate impose penalty under section 271(1)(c) of the Act. 10. We have heard the rival contentions and perused the record. The limited issue which has been raised in this bunch of appeals is against levy of penalty under section 271AAA of the Act. The learned Authorized Representative for the assessee has raised a legal plea in support of the order passed by the CIT(A) deleting penalty levied under section 271AAA of the Act. The case of assessee before us is that under Income-tax (Appel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e search has been initiated.- (1) The Assessing Officer may, notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search has been initiated under section 132 on or after the 1st day of June, 2007, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year. (2) Nothing contained in sub-section (1) shall apply if the assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

income referred to in sub-section (1). (4) The provisions of sections 274 and 275 shall, so far as may be, apply in relation to the penalty referred to in this section. Explanation.-For the purposes of this section,- (a) undisclosed income means- (i) any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions found in the course of a sea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

normal course relating to the specified previous year which is found to be false and would not have been found to be so had the search not been conducted; (b ) specified previous year means the previous year- (i) which has ended before the date of search, but the date of filing the return of income under sub-section (1) of section 139 for such year has not expired before the date of search and the assessee has not furnished the return of income for the previous year before the said date; or (ii) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the case of assessee was carried out on 25.08.2011, hence it was within range provided in section. Sub-section (2) to section 271AAA of the Act provides certain conditions to be fulfilled, on the fulfillment of which the assessee shall not be liable to levy of penalty under section 271AAA of the Act. Sub-section (3) provides that no penalty under section 271(1)(c) of the Act shall be imposed upon the assessee in respect of undisclosed income which is referred to in sub-section (1). Explanation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ute. However, the question is that where under the provisions of section 153A of the Act, six years preceding the assessment year in which search had taken place, are reopened, can the penalty under section 271AAA of the Act be attracted for the said six assessment years preceding the year of search and also for the year of search. We are concerned with the years which are preceding the year of search, hence we limit our discussion in this regard. Clause (b) of Explanation to section 271AAA of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Act, there is limited window to the Assessing Officer to levy the aforesaid penalty in respect of specified previous year which is clearly defined in Explanation (b) which in other words means that aforesaid penalty can be levied for a previous year in which search was conducted [clause (ii)] or for a previous year which had ended before the date of search, but the date of filing the return of income for such year under section 139(1) of the Act had not expired before the date of search a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

are in appeal before us are relate to assessment years 2006-07 to 2010-11. Admittedly, none of the assessment years are the years of search. Secondly, the second condition of the due date for filing the return of income having not expired under section 139(1) of the Act is not applicable to assessment years 2006-07 to 2010-11 where the assessee was due to file the return of income us 139(1) of the Act much before the date of search. The assessee claims that it had furnished the said returns of i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

271AAA of the Act are not attracted for assessment years 2006-07 to 2010-11. Accordingly, we hold so. Thus, the assessee is not liable for levy of penalty under section 271AAA of the Act for the said assessment years. Accordingly, we uphold the order of CIT(A) in deleting penalty levied under section 271AAA of the Act, though on different grounds. 14. The learned Departmental Representative for Revenue has also relying on the grounds of appeal pointed out that CIT(A) had failed to exercise his c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version