|The Tax Publishers2020 TaxPub(DT) 5364 (Visakhapatnam-Trib)
INCOME TAX ACT, 1961
Where additional income admitted by the assessee does not fall under the definition of undisclosed income as provided in section 271AAB, there was no case for levy of penalty under section 271AAB.
Penalty under section 271AAB - Leviability - Additional income admitted by assessee not falling under definition of 'undisclosed income' -
A search under section 132 was conducted in the case of assessee. AO considered the explanation provided by assessee and viewed that since assessee had admitted the additional income and accepted the same, penalty was leviable under section 271AAB. Held: For the purpose of undisclosed income as provided in section 271AAB there must be money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions which required to be found during the course of search. In the instant case, there was no such evidences were found evidencing undisclosed income. Thus, it was unable to accept the contention of AO that the penalty is leviable irrespective of unearthing any evidence of earning undisclosed income which fits in to the definition of undisclosed income. Further. Department also failed to establish that the additional income admitted represents the undisclosed income. Hence, there was no case for levy of penalty under section 271AAB.
FAVOUR : In assessee's favour.
A.Y. : 2016-17
IN THE ITAT, VISAKHAPATNAM BENCH
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