| Question And Answer | |
|---|---|
| Subject: | Whether additions on account of seizure of gold coins in the course of search , which was received on the occasion of Silver Jubilee of marriage anniversary and levy of Penalty under section 271AAB(1)(B) is justified ? |
| Category: | Income-Tax |
| Querist: | AASHISH SARASWAT |
| Answered by: | Advocate Rahul Hakani |
| Tags: | 271AAB, Gold coins, Search and Seizure |
| Date: | May 15, 2021 |
There was search operation u/s132 and block assessment has been completed.During the Assessment Year 2019-20 the AO has levied a penalty u/s 271 AAB(1)(B) on count of bullion found and seized in the locker.The bullion so found and seized a gold coins which the assessee received during the golden jubilee of the Navrattan enterprise and another one at his super annuation from the Navrattan and two gold coins acquired by assessee and his wife during silver jubliee of marriage anniversay. All these facts were disclosed by assessee in the assessment proceedings. AO rejected the proposition made forward by us and added the amount u/s 69 A and imposed a penalty . Further more assessee is a salaried employee and income from other sources and never ever had been assessee earned income more than 10 lacs in the block assessment
How to deal with the case
You may file appeal against the Assessment order. If the addition is deleted then penalty will also be deleted.
Note : The assessee should produce evidence before the Appellate Authorities in the form of confirmation , photographs , and may also file Affidavit in the Appellate proceedings by making application for admitting the additional evidence . The Appellate Authorities may admit the additional evidence and may delete the addition .
Dr. K . Shivaram Senior Advocate