| Question And Answer | |
|---|---|
| Subject: | Whether penalty u/sec. 271D can be levied on undisclosed money surrender by the assessee during search/ Survey under Income tax Act 1961. |
| Category: | Income-Tax |
| Querist: | CA. Disha Shah |
| Answered by: | Research Team |
| Tags: | penalty, penalty u/s 271D, undisclosed income |
| Date: | September 17, 2021 |
During the course of search/ Survey action some incriminating documents found which indicates assessee has received on money in cash in excess of Rs. 2lakh from flat purchasers. He surrender the same and paid the taxes. Whether penalty U/Sec. 271D can be levied on this on money taxed as undisclosed income.
Penalty u/s 271D cannot be levied . Refer following case laws ;
CIT v. Standard Brands Ltd. (2006) 204 CTR 48 / 285 ITR 295 / 155 Taxman 383 (Delhi)(HC)
-Held that penalty is not leviable when in a case the Revenue takes the stand that the alleged deposit was undisclosed income of the assessee.
DIT ( E) Young Men Christian Association [2014] 49 taxmann.com 72/ 227 Taxman 31 (Mad(HC)
-Once certain amount was subjected to tax under section 68, question of treating it as transaction in violation of section 269SS or section 269T did not arise as it stood mutually excluded.
Dy. CIT v. G. S. Entertainment (2007) 109 TTJ 54 (Mum.)(Trib.)
-Penalty levied under section 271D in respect of amount added as undisclosed income in block assessment was invalid.
Dy.CIT v. G.S. Entertainment [2009] 28 SOT 39 (URO)/[2007] 109 TTJ 54 (Mum) ( Trib).
-Once an amount is assessed as undisclosed income of assessee in block assessment for block period of assessee, provision of section 269SS, read with section 271D, cannot be resorted to for levying penalty .