Case Law Details
JCIT Vs Vijay Kumar Saini Sanwar Kekri (ITAT Jaipur)
ITAT Jaipur held that initiation of penalty proceedings u/s. 271AAB(1A) of the Income Tax Act without specifying the ground and default on the part of the assessee and also without specifying the undisclosed income on which penalty was proposed to be levied is unsustainable-in-law.
Facts- A search and seizure action u/s. 132 of the IT Act, 1961 was carried out at the premises of assessee in connection with search and seizure action in Saini-Gupta- Malpani-Somani Group of Ajmer on 02.2020. During the year under consideration, the assessee filed his original Return of Income u/s. 139(1) declaring total income of Rs. 3,34,40,150/-. During the course of assessment proceedings, the appellant furnished only revised computation of total income, but neither any revised ROI was found available on e-filing portal/departmental system nor furnished by the appellant. Revised computation of total income furnished by the appellant has not been given cognizance, therefore, after making an addition of Rs. 2,87,50,000/- to the returned income on account of undisclosed Business Income assessment proceedings u/s. 143(3) were completed at total income of Rs. 6,21,90,150/- vide order dated 29.09.2021.
AO also initiated penalty proceedings u/s. 271AAB(1A) separately and accordingly issued show cause notices u/s. 271 read with section 274 of the IT Act without specifying the default prescribed u/s. 271AAB(1A). AO imposed penalty u/s. 271AAB(1A) @ 60% of the undisclosed income of Rs. 2,87,50,000/-, imposed penalty of Rs. 1,72,50,000/-. CIT (A) upheld the order of the AO. Being aggrieved, the present appeal is filed.
Conclusion- Held that in the case in hand, the AO in the show cause notice has neither specified the grounds and default on the part of the assessee nor even specified the undisclosed income on which the penalty was proposed to be levied. Thus it is clear that the show cause notice issued by the AO for initiation of penalty proceedings under section 271AAB(1A) is very vague and silent about the default of the assessee and further the amount of undisclosed income on which the penalty was proposed to be levied.
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