Asstt. Commissioner of Income-tax v. Mahima Real Estate Pvt. Ltd.

Parties Involved

Facts Summary

The assessee, Mahima Real Estate Pvt. Ltd., is a company engaged in the business of real estate. A search under section 132 was conducted at the company's premises on 30-10-2014. During the search, books of accounts, documents, and loose papers were found and seized. The Managing Director of the assessee company surrendered additional income of Rs. 9,95,00,000/- for the year on account of construction expenses and admitted current year profits of Rs. 10,00,00,000/-. The total sum of Rs. 19.95 crores was treated as surrendered income by the assessee company. The Assessing Officer levied a penalty of Rs. 1,99,50,000/- under section 271AAB of the IT Act, 1961. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) who deleted the penalty. The revenue filed an appeal against this order before the Jaipur Bench of the Tribunal.…

Legal Issues

• 1. Whether the CIT(A) was justified in ignoring the undisclosed income of Rs. 19.95 crores surrendered by the assessee during the search.
• 2. Whether the penalty levied by the Assessing Officer under section 271AAB was justified.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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