The Tax Publishers2019 TaxPub(DT) 7608 (Jp-Trib)

INCOME TAX ACT, 1961

Section 271AAB

Mere entries relating to undisclosed investment in purchase of land could not be stated to be income represented by any money, bullion, jewellery or other valuable article or thing. Accordingly, mere entries of advance for land could not be treated as undisclosed income for the purpose of as defined in explanation to section 271AAB(1) and, therefore, no penalty under section 271AAB could be levied on amount surrendered.

Penalty under section 271AAB - Leviability - Income surrendered on account of entries relating to undisclosed investment in purchase of land, found during search -

During the course of search at assessee's premises a note book (diary) was found wherein there were notings relating to advance given to various persons towards puchases of land. Assessee admitted and disclosed a sum of Rs. 6 crores as undisclosed income from real estate business. AO levied penalty under section 271AAB on the amount surrendered.Held: Mere entries relating to undisclosed investment in purchase of land could not be stated to be income represented by any money, bullion, jewellery or other valuable article or thing. Accordingly, mere entries of advance for land could not be treated as undisclosed income for the purpose of as defined in explanation to section 271AAB(1) and, therefore, no penalty under section 271AAB could be levied on amount surrendered.

Relied:Raja Ram Maheshwari v. Dy. CIT ITA. No. 992/JP/2017 : 2019 TaxPub(DT) 3752 (Jp-Trib) and Ravi Mathur v. Dy. CIT ITA. No. 969/JP/2017 : 2019 TaxPub(DT) 3754 (Jp-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15



IN THE ITAT, JAIPUR BENCH

RAMESH C. SHARMA, A.M. & VIJAY PAL RAO, J.M.

Vijay Jain v. DCIT

I.T.A. No. 224/JP/2018

A.Y. 2014-15

23 September, 2019

In favour of Assessee.

Assessee by: S.L. Poddar, C.A.

Revenue by: Anuradha, JCIT

ORDER

Vijay Pal Rao, J.M.

This appeal by the assessee is directed against the Order, dated 12-1-2018 of the learned Commissioner (Appeals), Jaipur arising from the penalty order passed under section 271AAB of the Income Tax Act for the assessment year 2014-15. The assessee has raised following grounds :--

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