TMI Blog2021 (2) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 51,63,987/-. We find that the rate of penalty @ 200% is contemplated only u/s.271(1)(c) of the Act and not u/s.271AAA of the Act. It is elementary that the provisions of Section 271AAA and Explanation 5A to Section 271(1)(c) are distinct and separate and totally operate on two independent fields for different assessment years containing different provisions altogether. Hence, we hold that the lower authorities grossly erred in levying and confirming the penalty u/s.271(1)(c) of the Act in the facts and circumstances of the case for the A.Y. 2008-09 , being the year of search. No hesitation in directing the ld. AO to delete the said penalty for the A.Y.2008-09. Accordingly, the ground Nos. 1-5 raised by the assessee are allowed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mily. Accordingly, the business concerns and residences of Ruia family were also covered u/s.132 / 133A of the Act. The assessee is one such family member. Accordingly, the case was centralised and notice u/s.153A of the Act was issued on 05/02/2009 which was duly served on the assessee. The assessment was framed u/s.153A r.w.s.143(3) of the Act on 29/12/2010 for the A.Y.2008-09 determining total business loss of the assessee at ₹ 106,62,59,460/- and allowing the same to be carried forward. In the said assessment, a sum of ₹ 51,63,987/- was added towards unexplained cash deposits for which penalty proceedings were initiated u/s.271(1)(c) of the Act for concealment of particulars of income. This fact is clearly mentioned in the q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be imposed upon the assessee in respect of the undisclosed 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 search under section 132, which has- (A) not been recorded on or before the date of search in the books of account or other documents maintained in the normal c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied previous year‟. These words are apparently not available in the provisions of Section 271(1)(c) of the Act. Moreover, the provisions of Section 271AAA(3) specifically state that no penalty u/s.271(1)(c) of the Act shall be imposed in respect of undisclosed income referred to in Sub-section(1). Hence, it could be seen that the provisions of Section 271AAA of the Act are very clear and unambiguous to drive home the point that for the specified previous year‟ which includes year of search, any undisclosed income shall be liable for penalty @10% of undisclosed income only u/s.271AAA of the Act. It is not in dispute that unexplained cash deposits of ₹ 51,63,987/- has been treated as undisclosed income by the ld. AO for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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