Case Law Details
Ashish Mittal Vs DCIT (ITAT Delhi)
The Ld. AR submitted that the Assessing Officer has not contemplated the proper penalty notice as per the provisions of Section 271AAB. The Assessing Officer was not correct in imposing the penalty u/s 27 1AAB as the assessee has surrendered the income and also paid taxes accordingly
The insertion of Section 271AAB is from Finance Act, 2012 w.e.f 1/7/20 12. The Section 271AAB shall be invoked in case where search has been initiated u/s 132 on or after 1st Day of July, 2012. In the present case, the search took place on 30/03/2016. This penalty can be imposed in addition to tax if any payable by him. The Assessing Officer specifically at the time of penalty proceedings contemplated Clause B of Section 271AAB of the Act. But the limb of Clause B specifically mentions that if such assessee in the course of search in a statement under Sub Clause 4 of Section 132 does not admit the undisclosed income. However, in the present case, the assessee has very much admitted the undisclosed income and surrendered the undisclosed income. The assessee also paid the tax thereon. Besides this, the notice upon which the assessee is bound to give reply is vague and not as per provisions of the Income Tax Statute. The Revenue Authorities have not properly adjudicated/ invoked in true spirit of the penalty Provisions to impose penalty on the assessee. Thus, on the technicality as well as on merit, the penalty does not survive.
FULL TEXT OF THE ORDER OF ITAT DELHI
These 15 appeals are filed by the assessee against the order dated 13/08/2019 & ITA No. 8172/Del/2019, 8102/Del/2019 & ITA No. 8165/Del/2019 dated 16/08/2019 passed by CIT(A)’s-24, New Delhi for assessment years 2010-11, 2011-12, 2012-13 2013-14, 2014-15, 2015-16 & 2016-17 respectively.
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