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2012 (3) TMI 473 - AT - Income TaxPenalty u/s 271AAA - Held that:- Whatever question was put to assessee, she replied, she was not asked about the manner in which such income was earned and she was never asked to substantiate the manner in which the undisclosed income was derived. During assessment proceedings u/s 271AAA the question about manner in which income was derived were asked to assessee and she had replied to that. From here it implies that had this question been posed before her during recording of statement u/s 132(4) she might have replied that. The question of penalty as contained in section 271(1)( c) prior to 1.6.2007 has been decided by various High Courts. Before 1.6.2007, the penalty provisions on search & seizure were contained in section 271(1)( c) and immunity was granted to the assessee vide clause (2) of explanation 5 appended to section 271(1) (c). Provisions of clause (2) of explanation 5 appended to section 271(1)( c) are similar to immunity granted to assessee under clause (2) of section 271AAA. Considering the social environment it is not possible to expect from an assessee, whether literate or illiterate, to be specific and to the point regarding the conditions stipulated by Exception No. 2 while making statement under s. 132(4) of the Act In view of the above, the penalty is deleted. - Decided in favour of assessee.
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