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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Addition u/s 69A sustainable in absence of adequate evidence

Dr. (Late) S.F.V. Selvaraj Vs DCIT (ITAT Chennai) - Held that as the assessee was not able to furnish any evidence to the fact that the seized cash represent accounted income and also assessee has accepted that no proper cash books was maintained. Accordingly, addition u/s 69A sustained and also penalty leviable u/s 271AAA....

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Section 271(1)(c) penalty cannot be imposed instead of Section 271AAA

BLK Lifestyle Ltd. Vs ACIT (ITAT Delhi) - Section 271AAA seeks to impose penalty where undisclosed income is detected during the course of search initiated under Section 132 of the Act on or after 01.06.2007 which condition has been fulfilled...

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Order of CIT(A) directing AO to levy penalty u/s 271AAA unjustified

Asia Sugar Industries Pvt. Ltd Vs ACIT (ITAT Delhi) - It is not open to the First Appellate Authority i.e., CIT(A) to set aside the order of the A.O. and order a remand or to give any directions. Hence, CIT(A) was not justified in giving direction to the A.O. to levy penalty u/s. 271AAA of the I.T. Act, 1961....

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No section 271AAA penalty if assessee offered undisclosed income in section 132(4) statement

Late Sh. Krishan Kumar Modi Vs ACIT (ITAT Delhi) - ITAT held that penalty under section 271AAA(1) cannot be imposed in a case where the assessee has offered the undisclosed income in the statement recorded under section 132(4) of the Act, specifying the manner in which such income has been derived and if the assessee pays the tax along with interest...

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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...

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Recent Posts in "Section 271AAA"

Addition u/s 69A sustainable in absence of adequate evidence

Dr. (Late) S.F.V. Selvaraj Vs DCIT (ITAT Chennai)

Held that as the assessee was not able to furnish any evidence to the fact that the seized cash represent accounted income and also assessee has accepted that no proper cash books was maintained. Accordingly, addition u/s 69A sustained and also penalty leviable u/s 271AAA....

Read More

Section 271(1)(c) penalty cannot be imposed instead of Section 271AAA

BLK Lifestyle Ltd. Vs ACIT (ITAT Delhi)

Section 271AAA seeks to impose penalty where undisclosed income is detected during the course of search initiated under Section 132 of the Act on or after 01.06.2007 which condition has been fulfilled...

Read More

Order of CIT(A) directing AO to levy penalty u/s 271AAA unjustified

Asia Sugar Industries Pvt. Ltd Vs ACIT (ITAT Delhi)

It is not open to the First Appellate Authority i.e., CIT(A) to set aside the order of the A.O. and order a remand or to give any directions. Hence, CIT(A) was not justified in giving direction to the A.O. to levy penalty u/s. 271AAA of the I.T. Act, 1961....

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No section 271AAA penalty if assessee offered undisclosed income in section 132(4) statement

Late Sh. Krishan Kumar Modi Vs ACIT (ITAT Delhi)

ITAT held that penalty under section 271AAA(1) cannot be imposed in a case where the assessee has offered the undisclosed income in the statement recorded under section 132(4) of the Act, specifying the manner in which such income has been derived and if the assessee pays the tax along with interest of such income....

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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, this […]...

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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,...

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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...

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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...

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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....

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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....

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