TMI Blog2018 (10) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... bill trading before the date of search to the Revenue. Assessee had in the statement recorded u/s.132(4) of the Act accepted accommodation bill trading done by it with M/s. BGR Energy Systems Ltd and earning of 0.25% commission. Claim of the assessee is that such commission was accepted for purchasing peace from Department. This claim, in our opinion cannot be accepted since there is no alleviating clause in Section 273AAB of the Act. That apart, assessee has not filed its return within the time allowed u/s.139(1) of the Act but only after issue of notice u/s.142(1). Thus what was returned by the assessee fell within the definition of the term "undisclosed income" coming under Explanation (c) to Section 271AAB. As to the contention of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that assessee was providing bogus bills to one M/s. BGR Energy Systems Ltd. It seems in the statement recorded u/s.132(4) of the Act at the time of search Managing Director of the assessee admitted receipt of commission of 0.25% on such accommodation bills given by it. Previous year relevant to the impugned assessment year is the year in which search was conducted. Assessee did not file any return within the time allowed u/s.139(1) of the Act. Ld. Assessing Officer issued notice u/s.143(2) of the Act and pursuant to such notice, on 07.08.2015 assessee filed a return admitting income of A.3,22,600/-. Returned income was accepted and the assessment completed. 3. Thereafter proceedings u/s.271AAB of the Act was initiated and notice iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had returned the income to purchase peace from the Department. Main contention of the assessee was that it was an estimated income and not based on any seized material. Assessee also stated that it had co-operated with the Department and paid taxes. As per the assessee, the sum of A.3,22,600/- could not be considered as undisclosed income. 5. However, ld. Commissioner of Income Tax (Appeals) was not impressed by the above arguments. According to him, assessee was receiving cheque payments on bogus bills and thereafter withdrawing money from the bank and giving it back to the Company to whom the bills were issued, for a commission of 0.25%. Further, according to the ld. Commissioner of Income Tax (Appeals) assessee had admitted the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing 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 July, 2012, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him,- (a) a sum computed at the rate of ten per cent. of the undisclosed income of the specified previous year, if such assessee- (i) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived ; (ii) substantiates the manner in which the undisclosed income was derived ; and (iii) on or before the specified date- (A) pays the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 153A for furnishing of return of income expires, as the case may be ; (b) specified previous year means the previous year- (i) which has ended before the date of search, but the date of furnishing 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 date of search ; or (ii) in which search was conducted ; (c) 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch commission was accepted for purchasing peace from Department. However, this claim, in our opinion cannot be accepted since there is no alleviating clause in Section 273AAB of the Act. That apart, assessee has not filed its return within the time allowed u/s.139(1) of the Act but only after issue of notice u/s.142(1) of the Act. Thus in our opinion what was returned by the assessee fell within the definition of the term undisclosed income coming under Explanation (c) to Section 271AAB of the Act. As to the contention of the assessee that, if at all penalty is levied u/s.271AAB of the Act, then such levy should be under clause (a) of Sub Section (1), what we find is that for applying the said clause, it is a necessary pre-condition th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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