The Tax Publishers2020 TaxPub(DT) 4116 (Kol-Trib)

INCOME TAX ACT, 1961

Section 271AAB

Penalty notice issued under section 274 read with section 271AAB did not specify default committed by assessee to attract penalty @ 10% or 20% or 30% of undisclosed income. Accordingly, the notice was defective and penalty levied on the basis of such notice could not be sustained.

Penalty under section 271AAB - Leviability - Non-specification of particular charge of offence in penalty notice -

AO pursuant to search conducted in assessee's case, levied penalty under section 271AAB. Assessee challenged validity thereof on the ground of non-mention of particular charge of offence in penalty notice. Held: Penalty notice issued under section 274 read with section 271AAB did not specify default committed by assessee to attract penalty @ 10% or 20% or 30% of undisclosed income. Accordingly, the notice was defective even otherwise, section 271AAB, and contemplates imposition of a penalty, pursuant to the disclosure of income in statement recorded under section 132(4) by the assessee. It is an admitted fact that no such statement was recorded from assessee. Accordingly, penalty levied by AO could not be upheld.

Followed:P.V. Doshi v. CIT (1978) 113 ITR 22 (Guj) : 1978 TaxPub(DT) 0606 (Guj-HC) and Ravi Mathur v. Dy. CIT ITA No. 969/JP/2017, Assessment Year 2015-16, Order, dt. 13-6-2018 : 2019 TaxPub(DT) 3754 (Jp-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14



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