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2018 (6) TMI 1525 - ITAT INDOREPenalty u/s 271(1)(c)/271AAA - Assessee has not substantiated the manner in which the undisclosed income was derived - Held that:- In all these cases the AO has not struck down the relevant “word” from the sentence in the cyclostyled proforma of penalty show cause notice which means that the Assessing Officer was not sure as to on what ground he has initiated the penalty proceedings and in such a case the alleged notice is not sustainable in law and is liable to be quashed. If the revenue has not asked specific question relating to the manner of deriving undisclosed income, the assessee while fulfilling the first condition of admitting the undisclosed income has already specified the manner of earning the income i.e. from business sources and the statement u/s 132(4) was not for individual business concern, but was for the group concerns/companies/business associates/individuals and at the point of time of giving the statement during the course of search, specific details about each business concern and the source of earning such undisclosed income are not practically possible for the person giving the statement on behalf of the group concerns/individuals. The business income surrendered has been offered and assessed as business income only. We are, therefore, of the view that the learned Commissioner of Income Tax (Appeals) erred in confirming the findings of the AO levying penalty u/s 271AAA. We accordingly set aside the findings of the learned Commissioner of Income Tax (Appeals) and delete the penalty in the case of M/s Keti Sangam Infrastructure (I) Limited, in the case of Keti-T Construction (India) Limited and in the case of Keti Sangam Infrastructure (I) Limited levied u/s 271AAA of the Act. - Decided in favour of assessee.
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