SHRI ARUN AGRWAL,JAMSHEDPUR vs. DCIT CENTRAL CIRCLE-2 , JAMSHEDPUR

PER BENCH:- This assessee’s appeal for assessment year 2013-14 arises against the Commissioner of Income Tax (Appeals)-3 Patna’s order dated 31.07.2017 passed in case No.143/CIT(A)-3/PAT/15-16 involving proceedings u/s 271AAB of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused

ITA No.193/Ran/2017 A.Y. 2013-14 Sh Arun Agarwal Vs. DCIT CC-2, Ranchi Page 2 Representative fails to indicate that the authorized officer or the Assessing Officer have referred to specified category of assets in the nature of any money, bullion, jewellery or valuable articles or thing or any entry in the books of account or other documents or transactions. His only case is that the same is based on assessee’s disclosure during the course of search in question dated 21.12.2012. We observe in these facts and circumstances that we are dealing with a penalty provision in a tax statute to be strictly interpreted. We therefore hold that both the lower authorities’ have erred in imposing the impugned penalty in assessee’s case to the tune of Rs.11,26,500/-. The same accordingly stands deleted.