Tribunal held that though the asessee admitted the undisclosed income in statement u/s. 132(4) but later retracted from the statement , original admission came to be effected. The assessee thereafter filing the return offering the income disclosed u/s 132(4) in the return of income will not get the immunity as per S. 271AAA(2)(i) of the Act. Levy of penalty is held to be justified. Tribunal held that there is no requirement of recording satisfaction before imposing penalty, unlike S. 271(1)(c) of the Act. Tribunal also held that for satisfying the immunity from penalty, conditions to be satisfied cumulatively i.e. surrender undisclosed income and to specify manner in which such income derived and pay taxes with interest in respect of undisclosed income along with return and the CIT(A) has the power to enhance the penalty.(ITA Nos. 932/PUN/13 A.Y. 2009-10)
Sanjay Dattatray Kakade v. A CIT (2019) 70 ITR 519 (Pune)(Trib.)
S. 271AAA : Penalty-Search initiated on or after 1st June, 2007– Retraction of statement–Filing the return admitting the additional income after retraction the assessee is not entitle to exemption-No requirement of recording satisfaction before imposing penalty-Immunity from penalty–Conditions to be satisfied cumulatively i.e. surrender undisclosed income and to specify manner in which such income derived ,and pay taxes with interest in respect of undisclosed income along with return. CIT(A) has the power to enhance the penalty.[S. 132(4), 251, 271AAA(2)]