|The Tax Publishers2020 TaxPub(DT) 5127 (Visakhapatnam-Trib)
INCOME TAX ACT, 1961
Where no search was conducted under section 132 and only survey under section 133A was conducted, no penalty could be levied under section 271AAB.
Penalty under section 271AAB - Leviability - Survey conducted at assessee's premises and not search under section 132(4) -
In group cases of M/s. M Diamonds and Jewellers search under section 132 was conducted and in case of assessee survey under section 133A was carried out but not search under section 132. AO completed assessment under section 153C read with section 143(3) and accordingly levied penalty under section 271AAB. Assessee challenged this. Held: For initiating penalty under section 271AAB, search under section 132 is mandatory. In the instant case, no search was conducted under section 132 and only survey under section 133A was conducted and assessment order was passed under section 153C read with section 143(3). Therefore, no penalty was leviable under section 271AAB.
Followed:Rajendra Kumar Jain v. Dy. CIT ITA No. 80 & 81/Vi/2017, dated 11-8-2017.
FAVOUR : In assessee's favour.
A.Y. : 2013-14
IN THE ITAT, VISAKHAPATNAM BENCH
SUBSCRIBE FOR FULL CONTENT