TMI Blog2019 (3) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... 5A to section 271(1)(c) enables imposition of penalty for a period other than ‘specified previous year’ contemplated under s. 271AAA. Therefore the satisfaction of the AO qua a wrong section for the purposes of penalty of strict nature is clearly no satisfaction in the eyes of law. The whole action of the AO carried under s. 271(1)(c) is thus vitiated and a nullity in law. In the backdrop of these observations we do not consider it expedient to examine any other aspect of the matter. The entire proceedings is bad in law at the threshold. The penalty imposed under s. 271(1)(c) of the Act is thus no sustainable in law. - Decided in favour of assessee. - I.T. (SS) No. 281/Ahd/2014 - - - Dated:- 28-2-2019 - Shri Pradip Kumar Kedia, Accounta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the course of search under s. 132(4) of the Act. The assessment was completed under s. 153A and the income was assessed at ₹ 1,60,08,210/- which was declared in the revised return under s. 153A of the Act. The AO alleged that the amount of ₹ 61,94,647/- was discovered as undisclosed income in the course of search for the specified year and consequently penalty under s. 271(1)(c) of the Act was justified for concealment of particulars of income. The AO accordingly imposed penalty of ₹ 24,08,800/- on the additional income of ₹ 61,94,647/- declared by the assessee. The CIT(A) in first appeal also confirmed the action of the AO towards imposition of penalty. 4. Aggrieved the assessee preferred appeal before the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and facts, no such documents or facts are referred in the assessment except the statement of the assessee. Therefore, the observations of the AO are bald and vague to this extent. The Ld. AR thus submitted that merely on account of oral evidence under s. 132(4), the penalty under s. 271(1)(c) cannot be invoked. The Ld. AR further pointed out from the assessment order that the satisfaction of the AO towards concealment was with reference to the specified year whereas the income was declared with reference to Asst. Year 2008-09 which falls in a non-specified previous year. The Ld. AR submitted that where the income relates to specified year, the imposition of penalty was required to be decided on the touch stone of sec. 271AAA of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der, the right course of action available to the AO is to invoke sec. 271AAA of the Act for the purposes of imposition of penalty on undisclosed income pertaining to specified year. The penalty has been invoked in the present case under s. 271(1)(c) of the Act which is not sync with the scheme of the Act. Explanation 5A to section 271(1)(c) enables imposition of penalty for a period other than specified previous year contemplated under s. 271AAA of the Act. Therefore the satisfaction of the AO qua a wrong section for the purposes of penalty of strict nature is clearly no satisfaction in the eyes of law. The whole action of the AO carried under s. 271(1)(c) is thus vitiated and a nullity in law. In the backdrop of these observations we do ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
