TMI Blog2021 (7) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act had been conducted in the premises of the assessee-firm. On the other hand, in the course of search under Section 132A of the Act against M/s.N.S. Vaishno Devi Developers (India) Pvt. Ltd, statements of partners of the firm were recorded and pursuant thereto notice under Section 153C of the Act was issued upon the assessee-firm. When return of income is filed in response to notice under Section 153C of the Act by a person other than the penalty who has not been searched in execution of warrant under Section 132 of the Act penalty under Section 271AAB of the Act cannot be imposed. Notice under Section 153C of the Act is incidental the search proceedings under Section 132 thereof and cannot be a foundation to impose penalty on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequent to search operation? 2. Whether the Hon ble ITAT is right in holding that penalty u/s.271AAB is to be invoked only in the cases of persons where assessment completed u/s.153A of the I.T.Act where as the provisions speak of search case and not searched persons? 3. Whether the Hon ble ITAT is right in holding that penalty levided u/s.271AAB is not relevant section in a case where assessment was completed u/s.153C in connection with the search initiated u/s.132? 4. Whether the Hon ble ITAT is right in referring in phrase search initiated u/s.132 in the Section 271AAB of the I.T.Act is limited to a person on whom search was conducted where as the intention of law is to cover entire search case? 5. Any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act reads as follows: 271AAB.Penalty where 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 July, 2012 (but before the date on which the Taxation Laws (Second Amendment) Bill, 2016 receives the assent of the President), the assessee shall pay by way of penalty, in additional to tax, if any, payable by him,- A plain reading of the said provision makes it amply clear that penalty under the provision may be imposed only when search has been initiated against the assessee. Admittedly, in the present case, search was conducted under Section 132 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 132A of the Act against M/s.N.S. Vaishno Devi Developers (India) Pvt. Ltd, statements of partners of the firm were recorded and pursuant thereto notice under Section 156C of the Act was issued upon the assessee-firm. When return of income is filed in response to notice under Section 156C of the Act by a person other than the penalty who has not been searched in execution of warrant under Section 132 of the Act penalty under Section 271AAB of the Act cannot be imposed. Notice under Section 156C of the Act is incidental the search proceedings under Section 132 thereof and cannot be a foundation to impose penalty on the assessee who has not been searched. In view of such fact, we are of the opinion there is no perversity or illegality i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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