Section 271(1)(c), read with section 271AAA, of the Income-tax Act, 1961 - Penalty

IT: Section 271AAA and section 271(1)(c) have different concomitant scopes and are mandated to operate exclusively

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[2015] 55 taxmann.com 284 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'C'

Assistant Commissioner of Income-tax, Central Circle-13, Mumbai

v.

Prakash Steelage Ltd.*

SANJAY ARORA, ACCOUNTANT MEMBER

AND AMIT SHUKLA, JUDICIAL MEMBER

IT APPEAL NO. 5221 (MUM.) OF 2012

[ASSESSMENT YEAR 2009-10]

JANUARY  28, 2015

Section 271(1)(c), read with section 271AAA, of the Income-tax Act, 1961 - Penalty - For concealment of income (Section 271AAA v. section 271(1)(c)) - Assessment year 2009-10 - Whether section 271AAA and section 271(1)(c) have different concomitant scopes and are mandated to operate exclusively - Held, yes - There was a search and seizure action under section 132 at premises of assessee - Several incriminating materials were found leading to disclosure of undisclosed income vide statement under section 132(4) - Addition was made by Assessing Officer - Thereafter, penalty under section 271AAA had been levied by Assessing Officer as assessee could not specify manner in which such income had been derived - Commissioner (Appeals) deleted penalty on basis of a finding that there was substantial compliance, not warranting any further denial of benefit of Explanation 5A to section 271(1)(c) - Commissioner (Appeals) having examined levy on basis and anvil of a different provision, matter was to be restored back to him for consideration afresh - Held, yes [Paras 4.3 and 4.4] [In favour of revenue/Matter remanded]