INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Initiation of levying penalty under section 271(1)(c), instead of section 271AAA - -

This miscellaneous application was filed by revenue in respect of order passed by the Tribunal submitting that order of Tribunal was not acceptable on merit by revenue as per the specific provision under section 271AAA thereby assessee should pay by way of penalty in addition to tax, if any, payable by him a sum computed at a rate of 10% of the undisclosed income of the specified previous year. Since assessee had already filed its original return under section 139(1) before the search date, therefore, assessment year 2010-11 is not a specified year as per definition of section 271AAA. Penalty under section 271AAA was not applicable and levying penalty under section 271(1)(c) would be rightly applicable in this case. Held: It was pertinent to note that High Court ([ITA 847/2019, dt. 9-10-2019]) has admitted the appeal filed by the Revenue, on the same issue contested in present miscellaneous application filed by Revenue. Therefore, miscellaneous application did not survive. Besides this reason, Revenue was also seeking review of the order ([ITA No. 4818/Del/2014, dt. 16-4-2019] : 2019 TaxPub(DT) 3537 (Del-Trib)) which was beyond the scope of Section 254. There was no mistake apparent from the record.

REFERRED : Principal CIT v. Saviour Builders (P.) Ltd. [ITA 847/2019, dt. 9-10-2019] Assistant CIT v. Saviour Builders (P.) Ltd. [ITA No. 4818/Del/2014, dt. 16-4-2019] : 2019 TaxPub(DT) 3537 (Del-Trib)

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 271(1)(c)

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