Brief of the case:
The ITAT Kolkata in the above cited case held that if the additional income disclosed by assessee u/s 132(4) voluntarily without being any incriminating material found during the course of search , then department cannot levy penalty u/s 271AAA on such voluntarily disclosed income.
Facts of the case:
- A search operation was conducted in the business premises of the assessee on 11.9.2009.In the course of search some transaction books of the assessee broking co. were seized. The assessee filed its return of income on 25.9.2009 declaring total loss of Rs. 6,71,01,221/-Pursuant to the search, notice u/s 153A of the Act was served upon the assessee. The assessee filed the return of income in response to notice issued u/s 153A of the Act on 31.5.2010 declaring total loss of Rs. 4,71,01,221/- wherein the assessee included the disclosure made during the course of search operations of Rs. 2,00,00,000/-.
- Pursuant to the search, the assessee filed a disclosure petition before the ADIT (Investigation), Unit-III(4), disclosing additional income of Rs. 2,00,00,000/- for AY 09-10 and AY 10-11 as the assessee may not be able to instantly produce all the relevant documentation required by the department with regard to monies received from various parties including advances, margin money and deposits.
- The assessment was completed u/s 153A / 143(3) of the Act on 11.5.2011 by treating the share trading loss as speculation loss in terms of Explanation to Section 73 of the Act and after making minor disallowances and determining total income of Rs. 1,73,55,290/-. Penalty proceedings u/s 271AAA of the Act was initiated by the AO for additional income disclosed in return filed u/s 153A.
- CIT(A) decided the case in favour of assessee. Aggrieved revenue is in appeal before ITAT.
Contention of the Assessee:
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