Penalty u/s 271AAB Deleted – ITAT Jaipur Rules Notice Defective & Income Not ‘Undisclosed’

Rupesh Tambi Vs ACIT (ITAT Jaipur) A search was conducted on 15.10.2014 in the Surana Group, where the Assessee, proprietor of Arshia Jewellers, was also covered. The AO levied a penalty of ₹22.21 lakh u/s 271AAB(1)(c) on alleged undisclosed income of ₹74.03 lakh, comprising ₹49.50 lakh (investment in house construction) & ₹24.53 lakh (difference in stock valuation). CIT(A) upheld the levy. Before Tribunal, the Assessee contended that: The penalty notices were vague, not specifying whether it was under clause (a), (b) or (c) of s. 271AAB; Penalty u/s 271AAB is not mandatory, as th...