Provisions of section 271AAB of Income
IN THE INCOME TAX APPELLATE TRIBUNAL
PATNA BENCH “SMC” AT KOLKATA
Shiv Bhagwan Gupta S/o Lt. Badri Prasad G vs Asst. Commissioner of Income-tax, Central Circle-1, Patna.-
ITA No.194/Pat/2019. Dated:- 20, March 2021
Short Summary
Provisions of section 271AAB of Income Tax Act 1961, it is evident that the Section 271AAB of this act is self-contained. There can be no doubt that there is no discretion with the Assessing Officer. the parameters by which the Assessing Officer or the tax authorities are bound in regard to the rate of penalty and the circumstances on the basis of which the penal provisions under income tax act. can be attracted are self-explanatory.
It can be noticed that the Co-ordinate Benches of the Income Tax Tribunal have categorically held that.- the expression ‘undisclosed income’ is given a definite and specific meaning, and the word has not been described in an inclusive manner. so as to enable the Income tax authorities to give wider. or elastic meaning which enables them to bring within its ambit the species of income not specifically covered by the definition. However, such penal provisions under income tax act are required to be interpreted in a strict. specific and restricted manner and not in an inclusive manner. If the surrendered income does not fall in the definition of “undisclosed income” as defined u/s 271AAB of this Act, the penalty is not warranted.
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In the view of ITAT, the income declared by the Income tax assessee in the return of income. or found or assessed by the Assessing officer (AO) in the assessment proceedings may be relevant for assessment of the income under section 68 /69 of this act and other related provisions of the Act and also for the levy of penalty under section 271(1)(c) of this Act in view of the relevant provisions of section 68/69 and 271(1)(c) of this Act.
However, for the levy of penalty u/s 271AAB of this act. the case must fall within the four corners of the definition of expression “undisclosed income” as defined u/s 271AAB fo this act itself.
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