Case Law Details
Ramavatar Mandavewala Vs JT.CIT (ITAT Mumbai)
Introduction: The case of Ramavatar Mandavewala vs. JT.CIT, heard by ITAT Mumbai, centers around the imposition of a penalty under Section 271AAB of the Income-tax Act, 1961, for the Assessment Year 2013-14. The key issue revolves around the applicability of the penalty in the absence of a direct search on the assessee.
Detailed Analysis:
1. Background: During a search operation on M/s Gold Sukh Safety Vaults Ltd, a locker allegedly owned by the assessee, Ramavatar Mandavewala, was found with undisclosed cash of Rs.15 lakhs. The assessee admitted ownership of the locker in a statement under section 132(4) but argued against the imposition of penalty under Section 271AAB.
2. Prerequisites for Penalty under Section 271AAB: Section 271AAB mandates the initiation of a search under section 132 for the penalty to be levied. In this case, no search was directly conducted on the assessee. While the assessee admitted ownership of the locker, the absence of a specific search on him raises questions about the applicability of Section 271AAB.
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