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आयकर अपीलीय अिधकरण इंदौर (cid:586)ायपीठ इंदौर

IN THE INCOME TAX APPELLATE TRIBUNAL

INDORE BENCH, INDORE

BEFORE MS. SUCHITRA R. KAMBLE, JUDICIAL MEMBER

AND

SHRI B.M. BIYANI, ACCOUNTANT MEMBER

ITA No.124/ Ind/ 2025

Assessment Year: 2011-12

Star Delta Transformers ACIT/ DCIT 1(1)

Ltd., Bhopal

92-A Industrial Area /

बनाम

Govindpura,

Vs.

Bhopal

(Assessee/ Appellant) (Revenue/ Respondent)

PAN: AACCS0399D

Assessee by Shri Anil Khabya, AR

Revenue by Shri Ashish Porwal, Sr. DR

Date of Hearing 09.12.2025

Date of Pronouncement 22.12.2025

आदेश / O R D E R

Per B.M. Biyani, A.M.:

Feeling aggrieved by order of first appeal dated 20.12.2024 passed by

learned Commissioner of Income-tax-NFAC, Delhi [“CIT(A)”] which in turn

arises out of penalty-order dated 20.03.2020 passed by learned DCIT/ ACIT-

1(1), Bhopal [“AO”] u/ s 271AAA of Income-tax Act, 1961 [“the Act”] for

assessment-year [“AY”] 2011-12, the assessee has filed this appeal on

following ground:

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Star Delta Transformer Ltd.

ITA No. 124/Ind/2025 – AY 2011-12

“That the Ld. CIT(A) erred in confirming penalty of Rs. 2,35,864/ - under

Sec. 271AAA of the Act.”

2. The background facts leading to present appeal are as under:

(i) A search u/ s 132 was conducted upon assessee-company wherein the

assessee admitted certain undisclosed income. Post-search, the

assessee filed return of income of AY 2011-12 declaring a total income

of Rs. 4,59,55,130/ -. In the return so filed, the assessee included

undisclosed income of Rs. 17,50,000/ - admitted during search but,

however, the assessee did not offer full amount of undisclosed income

admitted during search. The case of assessee was selected for scrutiny

and the AO completed assessment u/ s 143(3) vide assessment-order

dated 26.03.2013 after making further additions of undisclosed

incomes, viz. (i) Rs. 4,85,485/ - on account of unexplained cash and (ii)

Rs. 2,00,00,000/ - on account of unexplained stock.

(ii) Against assessment-order, the assessee filed appeal before CIT(A)

whereupon the CIT(A) granted substantial relief and after CIT(A)’s

order, there survived only these additions, viz. (i) Rs. 1,68,695/ - on

account of unexplained cash and (ii) Rs. 4,39,948/ - on account of

unexplained stock.

(iii) Simultaneous with passing of assessment-order, the AO also issued

show-cause notice dated 26.03.2013 to assessee for imposition of

penalty u/ s 271AAA which ultimately culminated into passing of

penalty-order dated 20.03.2020 imposing a penalty of Rs. 2,35,864/ -

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Star Delta Transformer Ltd.

ITA No. 124/Ind/2025 – AY 2011-12

equivalent to 10% of total undisclosed income of Rs. 23,58,643/ -. The

components of undisclosed income of Rs. 23,58,643/ - considered by

AO for imposition of penalty are as under:

1 Unexplained cash 1,68,695/ -

2 Unexplained stock 4,39,948/ -

3 Unexplained income already offered by assessee in 17,00,000/ -

the return of income

Total 23,58,643/ -

(iv) Against penalty-order, the assessee filed first-appeal to CIT(A) but did

not get any success. Now, the assessee has come before ITAT assailing

the orders of lower-authorities.

3. Ld. AR for assessee made a straightforward submission that although

the assessee has raised ground of appeal for entire amount of penalty of Rs.

2,35,864/ - imposed by AO and upheld by CIT(A) but the assessee is not

aggrieved by penalty qua the first two components i.e. unexplained cash of

Rs. 1,68,695/ - and unexplained stock of Rs. 4,39,948/ -. Therefore, penalty

to that extent is acceptable to assessee.

4. Ld. AR next submitted that the assessee is against penalty imposed by

AO qua third component i.e. the undisclosed income of Rs. 17,00,000/ -

admitted during search and offered by assessee in the return of income filed

and for that portion, he is making submissions before bench.

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Star Delta Transformer Ltd.

ITA No. 124/Ind/2025 – AY 2011-12

5. Ld. AR then invited our attention to the provision of section 271AAA

which is relevant in present case:

“271AAA. (1) The Assessing Officer may, notwithstanding anything

co