In course of search proceedings, statement of assessee was recorded under S. 132(4) wherein he surrendered long-term capital gain arising from sale of shares. AO levied the penalty in respect of surrender of income. Tribunal held that all transactions of purchase and sale and LTCG arising from sale of equity shares of listed companies were duly recorded in books of account, primary condition for treating such income as undisclosed income in terms of S. 271 AAB was not satisfied , accordingly the penalty was quashed. (AY. 2016-2017)
Aparna Agrawal (Smt.) v. DCIT (2019) 176 ITD 753 (Jaipur) (Trib.)
S. 271AAB : Penalty-Search initiated on or after 1st day of July 2012-Undisclosed income–Surrender of long term capital gain- income – Would not ipso facto be regarded as undisclosed income unless and until it is tested as per definition provided in Explanation to section 271AAB of the Act – Order of penalty is quashed. [S. 45, 132(4), 153A, 275]