As the search fell within the period June 1, 2007 to June 30, 2012 the CIT(A) restricted the penalty to 10% in terms of S.271AAA. On appeal, the Tribunal held that, in terms of S. 271AAA, penalty at a lower rate of 10 percent could be levied only if the undisclosed income belonged to ‘specified previous year’. Since the CIT(A) did not assess if the income belonged to the specified previous year (as defined under Explanation(b) to S. 271AAA), the matter was remitted back to examine afresh. (ITA No. 4814/Del/2014) (AY. 2006-07)
ACIT v. Nirmal Gupta (2018) 62 ITR 663 (Delhi) ( Trib.)
S. 271AAA : Penalty – Search initiated on or after 1st June, 2007 – Levy of penalty at the rate of 10% of the undisclosed income to be imposed only in respect of ‘specified previous year’ – The CIT(A) restricted penalty without examining ‘Specified Previous Year’, matter was set aside to AO for fresh consideration in light of explanation(b) S.271AAA.