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The Tax PublishersIT(SS)A. Nos. 146 & 147/Ahd/2017
2020 TaxPub(DT) 3043 (Ahd-Trib)INCOME TAX ACT, 1961
Section 271AAB
In the absence of documents of incriminating nature found during search suggesting that there was any undisclosed income of assessee, there was no undisclosed income found during search within meaning of Explanation (c) to section 271AAB and, therefore, as regards voluntary disclosure made by assessee no penalty could be levied under section 271AAB.
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Penalty under section 271AAB - Leviability - Additional income offered voluntarily without incriminating material found during search -
Assessee as a result of search disclosed an income of Rs. 3,82,01,600 in return filed in response to notice issued under section 153A. AO in the assessment order initiated penalty proceedings under section 271AAB. Assessee submitted that there was no material found in the course of search suggesting undisclosed income of it. As such income was disclosed in order to buy peace of mind without finding out any material and accordingly, there could not be any penalty on account of undisclosed income under section 271AAB. Held: There was no reference made by AO to the documents of incriminating nature found during search suggesting that there was any undisclosed income of assessee and as such there was no undisclosed income found during search and and, therefore, as regards voluntary disclosure made by assessee no penalty could be levied under section 271AAB as there was no undisclosed income within meaning of Explanation (c) to section 271AAB.
Supported by:Asstt. CIT v. Marvel Associates (2018) 170 ITD 353 (Visakhapatnam) : 2018 TaxPub(DT) 1929 (Visakha-Trib) and Mukesh D. Manglani & Ors. v. Asstt. CIT v. 591/Ahd/2018 vide Order, dated 18-12-2019 : 2019 TaxPub(DT) 8421 (Ahd-Trib) and Guruprasad Infrastructure (P) Ltd. v. Dy.CIT ITA Nos. 1658-1659/Ahd/2017 vide Order, dated 19-7-2019.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13 & 2013-14
IN THE ITAT, AHMEDABAD BENCH
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