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271aab

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Ravi Verma

Partner

49 Points Posted on 11 September 2012

Section 271AAB was introduced by the Finance Act 2012, imposing penalty on undisclosed income found in the course of a search U/s 132. For the purpose of the Section

Specified previous year means—

(i) the year in which search was conducted or

(ii) year ending before the date of search in respect of which due date u/s 139(1) has not expired and the assessee has not furnished return before the date of search.

As per my opinion, the word 'or' in the definition should be replaced by 'and'.

Friends, please provide a case law or commentary in support of/against my contention. It may be in relation to other penal provisions.

Replies (1)

Arvind Sharma

ACA

1432 Points Posted on 11 September 2012

It will be "or"... Because, they are defining the meaning of Specified Previous Year, which mean, here,

- year in which serch conducted

- year ending before the date of serch of which due date of filing ITR has not been expired.

So, "or" signifies, that If due date of fillinf ROI of PY ending before the date of serch has not expired, then PY will be that ended year, otherwise, it will be current year.

Thus, if you read "or" as "and", it will not make any meaning.

e.g.,

1) serch is conducted on 21-07-2012,

then Specified PY means, PY ended on 31-03-2012 (ie PY 2011-2012)

2) serch is conducted on 21-09-2012,

then Specified PY means, PY ended on 31-03-2012 (ie PY 2011-2012)

3) serch is conducted on 21-11-2012,

then Specified PY means, current FY (ie PY 2012-2013)