M/S RIVER VALLEY FLOUR MILLS PVT LTD,PATNA vs. ACIT, CENTRAL CIRCLE-1, PATNA
Facts
A search action u/s 132(1) was conducted on the assessee. The assessee subsequently declared an undisclosed income of ₹86,51,551/- in its return for A.Y. 2015-16, leading to a penalty under section 271AAB, which was confirmed by the CIT(A). The assessee contended this was a voluntary disclosure, not linked to any incriminating material found during the search or a prior statement under section 132(4).
Held
The Tribunal found that the ₹86,51,551/- was a purely voluntary disclosure by the assessee, not connected to any disclosure made under section 132(4) or incriminating material. It also noted the absence of recorded satisfaction by the AO regarding undisclosed income. Consequently, the Tribunal held that the disclosure did not fall under Section 271AAB and directed the deletion of the penalty.
Key Issues
The key issue was whether penalty under Section 271AAB of the Income Tax Act is applicable to income voluntarily disclosed in the return, without being linked to incriminating material found during a search or a statement recorded under Section 132(4), and in the absence of recorded satisfaction by the Assessing Officer.
Sections Cited
Income Tax Act: 132(1), Income Tax Act: 132(4), Income Tax Act: 142(1), Income Tax Act: 143(2), Income Tax Act: 153A, Income Tax Act: 271AAB, Income Tax Act: 271AAB(1)(a), Income Tax Act: 271AAB(1A)(b)
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Income Tax Appellate Tribunal, “PATNA” BENCH, PATNA
Before: SHRI RAJESH KUMAR, AM & SHRI PRADIP KUMAR CHOUBEY, JM
IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA” BENCH, PATNA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA No.14/PAT/2025 (Assessment Year:2015-16) M/s River Valley Flour Mills ACIT, Central Circle-1 Pvt. ltd. 219, Ashiana Towers, Exhibition Patna, Bihar Vs. Road, Patna-844101, Bihar (Respondent) (Appellant) PAN No. AAACD8209P Assessee by : Shri S.K. Tulsiyan, AR Revenue by : Shri Ashwani Kr. Singal, DR Date of hearing: 04.03.2025 Date of pronouncement : 11.03.2025 O R D E R Per Rajesh Kumar, AM:
This is an appeal preferred by the assessee against the order of the Commissioner of Income Tax, Patna-3 (hereinafter referred to as the “Ld. CIT(A)”] dated 31.12.2024 for the AY 2015-16.
The only issue raised in various grounds of appeal is against the order of ld. CIT (A), Patna-3, upholding the levy of penalty u/s 271AAB of the Act by the ld. AO, where the ld. AO has not recorded any satisfaction about the undisclosed income or undisclosed books of accounts, documents, money, bullion, jewellery or valuable article or thing even during the course of assessment or levy of penalty.
The facts in brief are that the assessee was subjected to search action u/s 132(1) of the Act on 17.08.2014, covering the residential and business premises of Gupta Nutrition Group of cases. The group is engaged in manufacturing and sale of atta, maida, sujji, bran etc. and has been pioneer in establishing flour mills in Bihar. The assessee
In the appellate proceedings, the ld. CIT (A) confirmed the penalty by observing and holding as under:-
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 11.03.2025.
Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 11.03.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Patna
