Penalty U/s 271AAB Modified — 30% Applicable Where Income Declared in Return Search Questions Not Properly Asked: ITAT Kolkata

Umesh Kyal Vs ACIT (ITAT Kolkata) The assessee challenged penalty levied u/s 271AAB at 60% arising from search proceedings where cash was found during search u/s 132. The AO levied penalty at higher rate treating entire amount as undisclosed income u/s 69A, which was confirmed by CIT(A) ITAT observed that during search, the authorized officers did not specifically question the assessee regarding source of cash or undisclosed income while recording statement u/s 132(4). Since conditions prescribed under sec.271AAB(1A)(a) were not properly triggered due to lapse in search questioning, the higher...