Case Law Details
R. P. Wood Products Private Limited Vs DCIT (ITAT Jaipur)
ITAT Jaipur held that imposition of penalty under section 271AAB of the Income Tax Act unsustainable as income does not fall in the category of undisclosed income.
Facts- Post conduct of search operations, the assessee offered an amount of Rs.2,07,96,754/- on account of commission sales which was neither disclosed in the original return of income nor the return of income filed in response to notice issued u/s 153A of the I.T. Act, 1961 for the A.Y.2018-19. Therefore, an addition of Rs.2,07,96,754/- is hereby made on account of undisclosed commission sales and added to the total income of the assessee for A.Y.2018-19.
AO noted that against the assessment order the assessee has not preferred any appeal and as the penalty proceedings were initiated u/s. 271AAB of the Act the assessee was asked to submit the reply. Post reply from the assessee, AO hold that the assessee is found to be liable for imposition of penalty u/s. 271AAB(1A) of the Act in respect of undisclosed income of Rs. 2,07,96,754/- and therefore, 60 % of the said amount was imposed as penalty for an amount of Rs. 1,24,78,052/-.
Aggrieved from the order of the ld. AO, assessee preferred and appeal before the ld. CIT(A). CIT(A) reduced the penalty from 60% of the said amount to 30%. Being aggrieved, the present appeal is filed.
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