INCOME TAX ACT, 1961

Section 271AAB

Penalty under section 271AAB - Filing of return declaring undisclosed income - Delay in filing return income - Imposition of

A search under section 132A in the premises of assessee was conducted, who was engaged in steel trading business. AO alleged that assessee was providing bogus bills to one M/s. B. Managing Director of assessee admitted in the statement recorded that receipt of commission of 0.25% on such accommodation bills given by it. AO issued notice under section 143(2) and pursuant to such notice, assessee filed a return of income. Thereafter proceedings under section 271AAB were initiated and notice issued to assessee. Assessee contended that since what was returned by it was accepted by Department, there was no concealment nor furnishing any inaccurate particulars. Held: Assessee had not filed its return within the time allowed under section 139(1) but filed same only after issue of notice under section 142(1). Thus, what was returned by assessee fell within the definition of the term 'undisclosed income' coming under Explanation (c) to section 271AAB. As to contention of assessee that, if at all penalty is levied under section 271AAB, then such levy should be under clause (a) of sub-section (1), it is a necessary pre-condition that assessee should have furnished the return of income before specified date. Therefore, assessee could not take advantage of clause (a) of sub-section (1) of section 271AAB and penalty was rightly levied.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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