within a reasonable time. Explanation 5 to section
271(1)(c) and sub-section (2) to section 271AAA talk of
immunity from imposition of penalty ... language of sub-section (1) of
section 271 in conjunction with sub-section (1) of section
271AAA , it becomes glaringly apparent that whereas section
levied by the DCIT, Central Circle-2(4), Mumbai under
section 271AAA of the Act vide order dated 26.12.2016.
2. At the outset ... leviable as
assessee's case fell under sub- section (2) of section
271AAA - Held, yes [Para 9] [In favour of
assessee
applicable in such
cases where search u/s 132 was initiated before 1.6.2007 whereas u/s
271AAA , the provisions therein are applicable in a case ... assessee falls exactly within the
purview of sub section 2 of section 271AAA . Thus the impugned penalty
levied contrary
to the provisions contained in section
order directed the A.O. to issue notice under section
271AAA of the I.T. Act, 1961 for levy of the penalty.
5.3. The Learned ... Section 271(1)(c)
of the I.T. Act. He however directed the A.O. to initiate
penalty proceedings under section 271AAA
income are
'governed by section 271(1)(c) read with Explanation 5. As mentioned
earlier, provision of sec. 271AAA has been inserted ... newly introduced section 271AAB instead of sec. 271 AAA, introduced
by Finance Act 2012 is applicable.
5.12. Section 271AAA applies to assessment years for which
under section 132(4) of the Act. The assessee was of the view that the
conditions provided in sub-section (2) to section 271AAA ... complied with the entire conditions provided
in sub-section (2) of section 271AAA of the Act was factually incorrect.
Reference was made to questions
complied with the condition of the provisions of
sub-section (2) of section 271AAA of the Act. The assessee failed to specify the
manner ... assessee is covered under the
exception clause of sub-section (2) of section 271AAA of the Act. Since
assessee have disclosed the concealed income while
penalty u/s. 271(1)(c) is not leviable, if at all,
penalty was be levied, it could be u/s. 271AAA ... assessment year 2008-09, and accordingly in view of Sub
section (3) of Section 271AAA of the Act, no penalty under section
271AAA and provisions of section 271(1)(c) are mutually exclusive in
view of sub-section (3) of section 271AAA . Therefore, penalty cannot be
levied ... search penalty can be levied under
both the sections i.e. u/s 271AAA and under section
which search was conducted.
3.4.1. Perusal of sub section (1) of Section 271AAA clearly shows that penalty
can levied under this section only ... earning of such income in his reply u/s 132(4) , the penalty u/s
271AAA was not justified, however I do not propose
