Case Law Details
Paras Mal Jain Vs DCIT (ITAT Jaipur)
ITAT Jaipur held that income surrendered during the course of search cannot be said to qualify as an undisclosed income in the context of section 271AAB read with the explanation thereto and hence penalty u/s 271AAB of Income Tax Act not leviable.
Facts- The assessee is engaged in business manufacturing, trading, and export of precious & semi-precious stones from the last several years. A search u/s. 132 of the Act took place at the residence and business premises of the assessee. In the course of the search, the assessee surrendered an income of Rs.25,00,000/-on account of land advance which he admitted as his additional business income for the current year.
The assessee filed an original return declaring a total income of Rs. 89,40,360/- which included said additional income of Rs.25,00,000/- offered to tax in the course of the search.
AO initiated penalty proceedings u/s. 271AAB of the Act. CIT(A) confirmed the imposition of penalty. Being aggrieved, the present appeal is filed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
