When search is initiated, penalty is leviable u/s 271AAB and not under 271(1)(c)

PCIT Vs Jai Maa Jagdamba (Jharkhand High Court) Jharkhand High Court held that when search is initiated, penalty is leviable under section 271AAB of the Income Tax Act. Accordingly, initiation of penalty proceedings u/s 271(1)(c) post initiation of search is unsustainable. Facts- During the course of search, no incriminating material was found in the case of the respondent. The AO, subsequent to the said search had issued notice u/s. 153A of the Act to the respondent to furnish return of income of the respondent. In response to the said notice, the respondent filed its return of income on 07.0...