September 2023
Search and Seizure — Assessment in search cases — Undisclosed Income — Penalty — Change of Law — New Provision specially dealing with penalty in search cases — No incriminating document seized during search — Penalty could be imposed only under section 271AAB and not under section 271(1)(c).
42. Pr. CIT vs. Jai Maa Jagdamba Flour Pvt Ltd
[2023] 455 ITR 74 (Jharkhand)
A.Y. 2014–15: Date of order: 21st February, 2023
Sections 153A, 271(1)(c) and 271AAB of ITA 1961.
Search and Seizure — Assessment in search cases — Undisclosed Income — Penalty — Change of Law — New Provision specially dealing with penalty in search cases — No incriminating document seized during search — Penalty could be imposed only under section 271AAB and not under section 271(1)(c).
Search and seizure operation was carried out on one J group on 3rd September, 2014. Assessee was one of the members of the J Group. During the course of search, no incriminating material was found in the case of assessee. Pursuant to the search, the AO issued a notice under section 153A of the Income-tax Act, 1961, and required the assessee to file its return of income. Initially, the assessee filed its return, declaring a loss. However, subsequently, the AO confronted the assessee with audited financial statements, the assessee revised its return of income and declared profit. The AO, therefore, imposed penalty under section 271(1)(c) of the Act for concealing the particulars of its income, and furnishing inaccurate particulars of such income.
On appeal, the CIT(A) allowed the appeal of the assessee on the ground that penalty can be imposed upon the assessee under section 271AAB and not under section 271(1)(c) of the Act. The Tribunal upheld
