Order under section 254(1) of Income Tax Act

PER PAWAN SINGH, JUDICIAL MEMBER:

1. These two appeals by Revenue are directed against the separate orders oflearned CIT(A) – 3, Nagpurboth dated 13.06.2023 for Assessment Year (AY) 2017-18. In ITA No. 282/Nag/2023, the assessee has challenged the validity of penalty levied under section 271AAB of Rs. 60,31,056/- being penalty @ 10% of undisclosed income admitted in the statement recorded under section 132(4). In ITA No. 280/Nag/2023, the assessee has challenged the validity of order passed under section 154 dated 30.09.2019 in rectifying the penalty levied on 13.02.2019 whereby penalty was increased @ 60% of undisclosed income admitted in a statement under section 132(4). Both the appeals are inter- connected hence clubbed, heard together and are decided by common order to avoid the conflicting decisions. In ITA No. 282/Nag/2023, the Revenue has raised following grounds of appeal:

“1. On the fact and in circumstances of the case, the Ld. CIT(A) erred in deleting the penalty proceedings u/s 271AAB of the I. T. Act, 1961, levied by the AO of Rs. 60.31.056/- 10% undisclosed income as assessee had admitted additional income in the statement re