|The Tax Publishers2021 TaxPub(DT) 0393 (Bang-Trib)
INCOME TAX ACT, 1961
Where there was no search in the case of assessee under section 132 and assessee's assessment post-search in someone else's premises was framed under section 143(3) read with section 153C, levy of penalty under section 271AAB by AO on account of undisclosed income declared by assessee during the post-survey proceedings was not justified.
Penalty under section 271AAB - Assessment completed under section 143(3) read with section 153C - Absence of initiation of search under section 132 - Assessee declared undisclosed income
Assessee's assessment post-search in someone else's premises was completed under section 143(3) read with section 153C. Subsequently penalty under section 271AAB was levied which was sustained by the first appellate authority. On appeal assessee's plea was that section 271AAB penalty can be imposed only in the case of the searched assessee's assessment under section 153A, and not in the case of an assessee whose assessment was based on a third party search evidences applied under section 153C. Held: In the absence of search under section 132, the consequential or incidental assessment proceedings under section 153C of the Act will not, entitle the AO to usurp jurisdiction under section 271AAB for the purposes of imposition of penalty. Hence, penalty under section 271AAB cannot be levied in a case dealt under section 153C.
Applied:Suresh H. Kerudi in ITA Nos. 2950 to 2955/Bang/2018, Order dated 25-10-2019 : 2019 TaxPub(DT) 7264 (Bang-Trib)
FAVOUR : In assessee's favour.
A.Y. : 2012-13 & 2013-14
IN THE ITAT, BANGALORE 'B' BENCH
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