Case Law Details
Jagdishbhai R. Patel Vs ACIT (ITAT Ahmedabad)
CIT(A) upheld the penalty of Rs.19,50,000/-,levied u/s 271AAB of the Act @ 30% of the undisclosed income of Rs.65 lacs, noting that the assessee had failed to fulfill the following conditions by the specified date as required by the section :
a) filing its return declaring the undisclosed income
b) paying all taxes due thereon.
That accordingly penalty @ 30% was required to be levied as per the section on account of the above failure of the assessee. The Ld.CIT(A) rejected both the contentions of the assessee of treating belated return filed u/s 139(4) of the Act as being filed u/s 139(1) of the Act and treating cash seized to be treated as adjusted against taxes due thus tantamounting to taxes also being paid by the assessee on the undisclosed income by the specified date. The Ld.CIT(A) rejected the first contention pointing out the clear wording of the section requiring return to be filed as allowed u/s 139(1) of the Act. As for adjustment of cash seized against taxes to be paid he noted that section 132B of the Act allows adjustment of amounts seized against existing liabilities of tax only and self assessment tax being not in the nature of existing liability the cash seized could not be adjusted against the same. We find no infirmity in the well reasoned order of the Ld.CIT(A) as above.
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