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2016 (9) TMI 913 - ITAT HYDERABADPenalty 271AAA(2) - disclosure of undisclosed income - money found during search u/s 132 - Held that:- As per the provision, to avoid penalty, assessee had to admit the undisclosed income and specify the manner in which income was derived, he has to substantiate the manner in which income was derived and pay tax, together with interest in respect of the undisclosed income. In the present case, the assessee had disclosed the income and specified as well as disclosed the manner in which the undisclosed income was arrived and also paid the tax with interest. The cash was very much with the department as can be seen from the assessment order. He has fulfilled the requirement as per section 271AAA(2) of the Act. Even though, in the Lok Adalat order, there is no mention about the details of the compromise, the circumstantial evidence points to the claim of the assessee, we have to consider the submissions of the assessee in this case. Accordingly, we are of the view that the assessee has fulfilled the requirement of sub-section (2) of section 271AAA. Hence, the penalty levied u/s 271AAA is accordingly deleted. - Decided in favour of assessee
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