Case Law Details
Jorbagh Tea Company Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that in case where search has not been conducted upon the assessee, then penalty under section 271AAB of the Income Tax Act cannot be imposed.
Facts- A notice u/s. 153C of the Income Tax Act was issued to the assessee on 07.09.2015 calling for return of income for A.Y. 2008-09 to 2013-14. The assessee has filed the return of income for A.Y. 2013-14 on 15.09.2015 declaring total income at Rs.1,53,30,300/-. AO had issued a notice under section 143(2) for scrutinising this return. He passed an assessment order under section 143(3) read with section 153C of the Income Tax Act on 31.03.2016. AO has accepted the returned income by the assessee.
AO has initiated a penalty u/s. 271AAB of the Income Tax Act. AO has imposed a penalty of Rs.10,01,500/- vide its order dated 23.09.2016. Appeal to the ld. CIT(Appeals) did not bring any relief to the assessee.
Conclusion- Held that in case where search has not been conducted upon the assessee, then penalty under section 271AAB of the Income Tax Act cannot be imposed. The assessment in the present case has been framed under section 153C and not under section 153A, therefore, the assessee cannot be visited with penalty under the above provision. Accordingly we delete the penalty and allow the appeal of the assessee.
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