Case Law Details
ACIT Vs R.J. Corp. Limited (ITAT Delhi)
ITAT Delhi held that penalty under section 271AAA not imposable as undisclosed income admitted in the statement recorded u/s 132(4) and specifies the manner in which the income was derived.
Facts- The Assessee is a resident corporate entity. A search and seizure operation u/s. 132 of the Act was conducted in case of the Assessee and other group entities on 27.03.2012. In the course of search & seizure operation, in a statement recorded u/s. 132(4) of the Act from a person connected to the group, additional income to the tune of Rs.60.00 crores was offered at the hands of different entities including present Assessee. In so far as present Assessee is concerned, additional income of Rs.10.00 crores was offered on account of disallowance of expenses and others. However, in the return of income filed in response to notice issued u/s. 153A of the Act, Assessee offered additional income of Rs.1.75 crores, being interest income.
In the assessment proceedings, AO called for various details and ultimately made addition of Rs.17.57 crores by estimating the net profit after rejecting books of account. Of course, additionally, AO made disallowance of an amount of Rs.15.74 crores u/s. 14A read with Rule 8D.
However, presently, we are not concerned with that disallowance. Based on the disclosure of income of Rs.10.00 crores made at the time of search and seizure operation, Assessing Officer initiated proceedings for imposition of penalty u/s. 271AAA of the Act and ultimately passed an order imposing penalty of Rs.1.00 crore under the said provision.
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