Section 271AAA

Penalties imposable in Income Tax Search Cases

Income Tax - Default in complying with provisions of or with conditions prescribed under the Income-tax Act would attract certain penalty and in critical cases prosecutions as well. There are three modes built in the fiscal legislation for encouraging tax compliance: (a) Charge of Interest; (b) Imposition of penalty; (c) launching of prosecution agai...

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No Section 271AAA penalty on ad-hoc addition based on average GP rate

Ace Steel Fab (P) Ltd. Vs DCIT (ITAT Delhi) - M/s Ace Steel Fab (P) Ltd. Vs DCIT (ITAT Delhi) In the present appeal, the only addition made in the income was of Rs.11,52,300/- on account of estimation of Gross Profit @ 68%. It is the contention of the assessee that the discrepancy in stock was due to malfunction in the ERP software. Though, t...

Penalty can be levied on same ground on which proceedings was initiated

Sam India Builtwell (P) Ltd. Vs DCIT (ITAT Delhi) - ITAT states that, disclosure of manner in which undisclosed income was earned and substantiating the manner in which undisclosed income was earned are two different things. Hence, there is no clarity in the stand of the Revenue for initiation of penalty under Section 271AAA,...

Section 271AAA Penalty cannot be levied on Amount surrendered but not treated as undisclosed income

Rajendra Aggarwal Vs DCIT (ITAT Delhi) - Rajendra Aggarwal Vs DCIT (ITAT Delhi) It is pertinent to note that the Assessing Officer completed the assessment by accepting the return of income filed by the assessee which included surrendered amount of Rs. 51,64,100/-. In fact in the Assessment Order, the Assessing Officer added another sum of...

Penalty u/s 271AAA without addition to returned income unjustified

Pr. CIT Vs Bhavi Chand Jindal (Delhi High Court) - Penalty under section 271AAA could not be imposed on assessee on the ground that assessee failed to substantiate the manner in which undisclosed income was derived in case assessee had included the same in his return of income and accepted by AO without making any addition to the returned income....

Penalty U/s. 271AAA cannot be levied if not asked to substantiate Income Disclosed

ACIT Vs Sh. Bhavi Chand Jindal (ITAT Delhi) - ACIT Vs Sh. Bhavi Chand Jindal (ITAT Delhi) Since no specific query was raised, at the time of recording statement under section 132(4) and during the assessment proceedings, however, the manner was substantiated by filing written submission and also referring relevant documents relating to undisclo...

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Recent Posts in "Section 271AAA" | Total 12 Posts

No Section 271AAA penalty on ad-hoc addition based on average GP rate

Ace Steel Fab (P) Ltd. Vs DCIT (ITAT Delhi) -

M/s Ace Steel Fab (P) Ltd. Vs DCIT (ITAT Delhi) In the present appeal, the only addition made in the income was of Rs.11,52,300/- on account of estimation of Gross Profit @ 68%. It is the contention of the assessee that the discrepancy in stock was due to malfunction in the ERP software. Though, this […]...

Penalty can be levied on same ground on which proceedings was initiated

Sam India Builtwell (P) Ltd. Vs DCIT (ITAT Delhi) -

ITAT states that, disclosure of manner in which undisclosed income was earned and substantiating the manner in which undisclosed income was earned are two different things. Hence, there is no clarity in the stand of the Revenue for initiation of penalty under Section 271AAA,...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi

Penalties imposable in Income Tax Search Cases

Default in complying with provisions of or with conditions prescribed under the Income-tax Act would attract certain penalty and in critical cases prosecutions as well. There are three modes built in the fiscal legislation for encouraging tax compliance: (a) Charge of Interest; (b) Imposition of penalty; (c) launching of prosecution agai...

Posted Under: Income Tax | Articles

Section 271AAA Penalty cannot be levied on Amount surrendered but not treated as undisclosed income

Rajendra Aggarwal Vs DCIT (ITAT Delhi) -

Rajendra Aggarwal Vs DCIT (ITAT Delhi) It is pertinent to note that the Assessing Officer completed the assessment by accepting the return of income filed by the assessee which included surrendered amount of Rs. 51,64,100/-. In fact in the Assessment Order, the Assessing Officer added another sum of Rs. 14,00,000/- as unexplained cash fou...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi

Penalty u/s 271AAA without addition to returned income unjustified

Pr. CIT Vs Bhavi Chand Jindal (Delhi High Court) -

Penalty under section 271AAA could not be imposed on assessee on the ground that assessee failed to substantiate the manner in which undisclosed income was derived in case assessee had included the same in his return of income and accepted by AO without making any addition to the returned income....

Posted Under: Income Tax | Judiciary | All High Courts, Delhi High Court

Penalty U/s. 271AAA cannot be levied if not asked to substantiate Income Disclosed

ACIT Vs Sh. Bhavi Chand Jindal (ITAT Delhi) -

ACIT Vs Sh. Bhavi Chand Jindal (ITAT Delhi) Since no specific query was raised, at the time of recording statement under section 132(4) and during the assessment proceedings, however, the manner was substantiated by filing written submission and also referring relevant documents relating to undisclosed income, which were found and seized....

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi

No Penalty U/s. 271AAA on Income surrendered during Assessment

DCIT Vs Star Wire Ind. Ltd. (ITAT Delhi) -

DCIT Vs Star Wire Ind. Ltd. (ITAT Delhi) It is pertinent to note that the Assessing Officer himself has recorded the statement of Shri Mohinder Kumar Gupta in the assessment order, wherein the Director of the Company has elaborated the transaction which was also confirmed by Mr. Kailash Chandra Agarwal. The assessee Company through its [&...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi

No Penalty on Additional surrendered Income if no specific query was raised by search party

DCIT Vs Pradeep Aggarwal (ITAT Delhi) -

DCIT Vs Pradeep Aggarwal (ITAT Delhi) Since the assessee in the instant case has surrendered additional income and paid the taxes due thereon and no specific query was raised by the search party at the time of search to substantiate the manner of earning such income, therefore, following the decision of the Hon’ble Gujarat High [&hellip...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi

No Penalty U/s. 271AAA if Assessee substantiated the manner in which undisclosed income was derived

Mahavir Prasad Jaipuria Vs Assist. CIT (ITAT Delhi) -

As the assessee had discharged his onus by substantiating the manner in which undisclosed income was derived, being the savings of his wife, and had paid the due tax thereon, no penalty proceedings could be initiated against assessee....

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi

Penalty U/s. 271AAA cannot be levies if No search has taken place at assessee’s premises

DCIT Vs Jainco Developers (P) Ltd. (ITAT Delhi) -

Facts of the case, in brief, are that the assessee is a company and filed its return of income on 26th March, 2013 declaring total income of Rs.2,12,72,940/-. A search and seizure action u/s 132 of the I.T. Act was carried out at the business premises of M/s. Aggarwal Associates and Jainco Group of cases and their relatives on 19.10.2011...

Posted Under: Income Tax | Judiciary | All ITAT, ITAT Delhi