9911796707
TMI Blog2024 (5) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... 'Ld. AO') u/s 271AAB of the Income Tax Act (hereinafter referred to as 'the Act') on 29.03.2018 for the Assessment Year 2013-14. 2. The only issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in confirming the levy of penalty u/s 271AAB of the Act in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the materials available on record. The assessee company is engaged in the business of development of land. A search and seizure operation u/s 132 of the Income Tax Act was carried out on 23/08/2012 in M/s Landcraft Group of cases. During the course of search, statement u/s 132(4) of the Act was recorded from the Director of the assessee, wherein sum of Rs. 6,42,57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty notice dated 13/03/2018 u/s 271AAB of the Act was issued to the assessee in the form of letter show causing the assessee as to why penalty u/s 271AAB of the Act should not be imposed on the assessee. In this letter dated 13/03/2018, the Ld. AO had duly referred to the penalty proceedings already initiated u/s 271AAB of the Act on 31/03/2015. Hence, triggering point for the impugned penalty proceedings u/s 271AAB of the Act is show cause issued on 31/03/2015. 4. The Ld. AO levied penalty on the undisclosed income offered in the sum of Rs. 6,42,57,474/- with respect to specific income and of Rs. 3,98,235/- made in respect of addition u/s 69A of the Act. Accordingly, the penalty @10% amounting to Rs. 68,25,747/- was levied by the Ld. AO v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act are mutually exclusive. Accordingly, the format for issuing show cause notice for penalty u/s 271(1)(c) of the Act cannot be used for initiating penalty proceedings u/s 271AAB of the Act. Further, we find that the provisions of section 271AAB of the Act contains various types of levy of penalty in the following manner:- (i) 271AAB (1)(a)-10% of undisclosed income would be the penalty. (ii) 271AAB (1)(b)- 20% of undisclosed income would be the penalty. (iii) 271AAB(1)(c)-60% of the undisclosed income would be the penalty (iv) 271AAB(1A)(a)- 30% of undisclosed income would be the penalty. (v) 271AAB (1A) (b)- 60% of the undisclosed income would be the penalty. 6. Further we find that the expression undisclosed income is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed.] 8. From the above, it could be seen that there is a greater onus casted on the Revenue to specifically mention in the show cause notice itself as to what offence the assessee has committed and also to mention the rate of penalty that is sought to be levied by the Assessing Officer on the assessee i.e., 10% or 20% or 30% or 60% of undisclosed income, as the case may be. If none of these preliminary informations are mentioned in the show cause notice, then the show cause notice issued by the Ld. AO becomes completely defective and consequentially fatal and would vitiate the entire penalty proceedings. This issue, in any case, is no longer res integra in view of the decision of Kolkata Tribunal in the case of Sushil Kumar Paul vs. ACIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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