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TMI Blog2023 (5) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) erred in confirming the penalty order of learned Assessing Officer passed under section 271AAC of Rs.4,24,875 of Income Tax Act, 1961. 2 The Ld.CIT(A) erred in concluding that the amount disclosed by the appellant during the search had fit into the provisions of section 271AAB. 3. The Ld.CIT(A) erred in concluding the declaration of income by appellant during the course of search was not voluntary and therefore, the same is liable for levy of penalty under section 271AAB of the Act. 4. The ld.CIT(A) failed to appreciate the fact that the appellant initially declared an amount of Rs.1,00,00,000/- but returned an amount of Rs.2,24,82,820/- in the income tax returns filed under section 153A of the Act and therefore, the amount offere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot the case as the search operation u/s 132 led to the admission of income. It will not be out of place to mention that the incriminating material and evidences unearthed along with statements during the search and seizure operation u/s 132 of the I.T. Act ultimately lead to admission of income by the appellant and it was not even a voluntary disclosure. If not for the search u/s 132, there is no way the appellant would have admitted the undisclosed income. In view of the above discussion, the penalty of Rs.4,24,875/- levied u/s 271AAC(1) of the Act is hereby confirmed and the ground nos.1 and 2 are dismissed accordingly." 5. Feeling aggrieved with the order of ld.CIT(A), assessee is now in appeal before us. 6. This is an appeal filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of Rs.24,08,700/- on the said issues and the same is treated as undisclosed income of the assessee for the A.Y. 2018-19. 7. After receipt of penalty notice, the Assessing Officer had imposed penalty u/s 271AAB(1A) of the Act and had recorded finding in para 3(iii) of order passed u/s 271AAB of the Act by observing as under : "3(iii). Further, the admission made during the course of search is based on the material seized during the course of search. The additional income offered squarely fits into the meaning of 'undisclosed income' stipulated u/s 271AAB(1A) of the Act." 8. Before us, ld. AR had submitted that the income was disclosed by the assessee and thereafter has been taken into account by filing revised return of income and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) in the course of the search, in a statement under sub-section (4) of section 132, does not admit the undisclosed income; and (ii) on or before the specified date- (A) declares such income in the return of income furnished for the specified previous year; and (B) pays the tax, together with interest, if any, in respect of the undisclosed income; (c) a sum [computed at the rate of sixty per cent] of the undisclosed income of the specified previous year, if it is not covered by the provisions of clauses (a) and (b). 50[(1A) The Assessing Officer [or the Commissioner (Appeals)] 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te on which the period specified in the notice issued 51a[under section 148 or under section 153A, as the case may be,] 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 ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h and seizure action was carried out in the premises of group of M/s. Moksha Infracon Pvt. Ltd and M/s. Kaveri Erstwhile M/s. K V R Rail Infra Projects Pvt. Ltd on 09.08.2019 and notice u/s 153A of the Act was issued on 18.03.2019 and in response to the notice, the assessee had admitted an income of Rs.1,28,76,330/-. In Para 4 of the assessment order, reproduced hereinabove, the Assessing Officer had mentioned that the assessee in the sworn statement had admitted an amount of Rs.1 crore as undisclosed income for various assessment years and the above said aspect was accepted by the assessee in the affidavit filed on 27.08.2019. In our view, the above said fact of admitting the undisclosed income of various assessment years was not a stand a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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