ITAT Indore Reduces Section 271AAB Penalty to 30% While Dismissing Two Appeals

The Income Tax Appellate Tribunal in Indore delivered a mixed verdict by reducing the penalty levied under Section 271AAB from 60 percent down to 30 percent specifically for assessment year 2014-15. Concurrently, the tribunal rejected two separate appeals from the taxpayer, upholding concealment penalties previously imposed for the assessment years 2013-14 and 2009-10.

The ruling distinguishes how statutory penalty provisions apply to disclosed search income versus established concealment across different assessment periods. Tax authorities and appellants receive clarity on the strict conditions governing reduced penalty rates under search provisions versus traditional concealment charges.

Tax practitioners representing clients in search proceedings must review the tribunal's specific reasoning on statutory compliance for AY 2014-15 versus earlier years. Affected assesses should consult their legal counsel to determine whether further appeals to the High Court are viable based on the upheld portions of the order.