Section 271AAB Penalty Not Automatic Without Incriminating Material: ITAT Indore

Mukesh Kumar Ranka Vs ACIT (ITAT Indore) The Tribunal examined the rival submissions and case records, focusing on the scope and applicability of penalty under section 271AAB of the Income-tax Act. The Bench first referred to two key judicial precedents to outline the legal position on the interpretation of “undisclosed income” and the mandatory or discretionary nature of penalty under the provision. In the Jaipur Bench decision in Rajendra Agarwal v. DCIT, authored by the same Judicial Member, it was held that penalty under section 271AAB cannot be imposed unless the income disclosed duri...