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TMI Blog2025 (2) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, dated 29.06.2017. 1.1. The Registry has informed that the appeal filed by the assessee is barred by limitation by 52 days. An application along with an affidavit seeking condonation of delay has been filed by the assessee for condoning the delay stating as follows: Application seeking condonation of delay: "The order of Ld. CIT(A) was passed on 31st July 2023 in the matter of penalty U/s 271AAB for the asst year 2015-16. On receipt of this order after 3 days itself I had requested my professional CA retainer Sri Rajeev Mohta about filing of appeal before the Hon'ble ITAT Kolkata. Only last week I was informed by the deputed person that due to his indisposition coupled with festive holidays he missed it to file befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Bench ITAT to condone the aforesaid delay in submitting the appeal and accept the appeal on merit. 6. All the above facts stated are true to the best of my knowledge and belief." 1.2. Considering the application seeking condonation of delay as well as the affidavit and the reasons stated therein, we are satisfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within statutory time limit. We, therefore, condone the delay and admit the appeal for adjudication on merits. 2. The assessee is in appeal before the Bench raising the following grounds of appeal: "1) That under the facts and circumstances of the case the Id CIT(A) erred in confirming the action of the Ld. AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice was defective and therefore, the assessee should not be penalised. The Ld. AR also referred to pages 6, 7 & 8 of the paper book to re-emphasize the fact that there was no incriminating material and so the penalty levied should be cancelled. The Ld. DR countered the argument by saying that in case there was no search, no disclosure would have been made and a similar mention is also made in the assessment order. The incriminating material was found and is mentioned by the Ld. AO in the penalty order but how the same relates to the disclosure has not been corelated. 4. As per the definition of 'undisclosed income' specified in clause (c) of the explanation to section 271AAB of the Act is as under: "(c) "undisclosed income" means- (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thakur Prasad Sao & Sons (P.) Ltd. [2024] 163 taxmann.com 449 (Calcutta) where the facts were that for Assessment year 2006-07 and 2007-08 after search and seizure operations assessee declared certain undisclosed income which was added to income disclosed income which was added to income disclosed in returns filed in response to notice issued under section 153A. The Assessment orders were followed by notices under section 271(1)(c) read with section 274 and after considering assessee's submissions, Assessing Officer levied penalty under section 271(1)(c). On appeal Tribunal cancelled penalty on ground that show cause notice under section 274 was defective as it did not spell out grounds on which penalty was sought to be imposed. It has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee however, the assessee had not made any disclosure in the statement recorded while the locker no. 932A was subjected to search and seizure on 08.05.2020. Hence, as the disclosure did not relate to the finding of the search and was made suo motu and though the Ld. AO has referred to certain seized documents in the penalty order, but he has not corelated how the disclosure of Rs. 50 lakhs had any reference to the seized documents; therefore, the disclosure could not be treated as undisclosed income for the purpose of imposition of penalty u/s 271AAB and the penalty imposed is liable to be cancelled. Hence, Ground No. 1 is allowed and the penalty of Rs. 50,00,000 is hereby cancelled. Ground No. 2 is general in nature and does not req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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