Search Results For: CA Nishant Maitin

DATE: February 11, 2021 (Date of pronouncement)
DATE: March 20, 2021 (Date of publication)
AY: 2015-16
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S. 271AAB: Penalty u/s 271AAB can only be levied on "undisclosed income". The expression ‘undisclosed income’ is given a definite and specific meaning. It has not been described in an inclusive manner so as to enable the tax authorities to give a wider or elastic meaning. Species of income which is not specifically covered by the definition cannot be brought within its ambit. Such penal provisions are required to be interpreted in a strict, specific and restricted manner. Income declared by the assessee in the return of income or found or assessed by the AO in the assessment proceedings may be relevant for assessment of the income under section 68 /69 and other related provisions of the Act and also for the levy of penalty u/s 271(1)(c) of the Act. However, if it does not fall within the four corners of the definition of “undisclosed income”, penalty u/s 271AAB cannot be levied

The Assessing Officer has levied penalty @ 10% of the alleged undisclosed income, however, it is a matter of record in this case that the assessee has not made any surrender of any undisclosed income during the search action. The assessing officer has not initiated the penalty proceedings u/s 271AAB of the Act on the basis of or in consequence of the said search action, rather the assessing officer, has initiated the penalty proceedings during the assessment proceedings solely on the ground that the assessee has disclosed certain income from undisclosed sources in the return of income and paid due taxes thereupon