TMI Blog2014 (4) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... of Explanation 5 in its entirety to the assessee concerned and the authorized officer cannot stop short at a particular stage so as to permit the Revenue to take advantage of such a lapse in the statement - thus, there is no infirmity in the order is upheld – Decided against Revenue. - Tax Appeal No. 279 of 2014 - - - Dated:- 1-4-2014 - Akil Kureshi And Sonia Gokani,JJ. For the Appellant : Mr. Sudhir M. Mehta, Advocate ORDER (Per : Honourable Mr. Justice Akil Kureshi) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal { Tribunal for short] dated 12th July 2013 raising following questions for our consideration. Whether on the facts and circumstances of the case and as per law, the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 30.10.2007 declaring the total income of Rs. 1,50,34,421/- including such undisclosed income of Rs. 1,50,00,000/- and paid duly tax thereon. Notice u/s. 143 (2) issued and assessment u/s. 143 (3) was framed assessing total income as Rs. 1,50,34,400/- as declared in return of income, without making any addition thereto. The Assessing Officer levied penalty of Rs. 50,49,000/- after holding that the relief given in Explanation 5 is not available to the assessee after discussing the reasons in detail in the penalty order. 5. We have heard senior D.R perused the written submission and the decisions by the concern parties. Learned CIT (A) has decided this issue in para 4 of his order which is reproduced as under : 4. I have considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manner, in which the undisclosed income has been derived. Under these facts and circumstances, we do not find any infirmity in the order of the CIT (A) and has rightly followed the decision of Hon ble CoPage ordinate Bench. Therefore, this ground of Revenue s appeal is hereby dismissed. Explanation 5 to Section 271[1](c) of the Act provides for a deeming fiction, where in search cases the assessee shall be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income. The later portion of the explanation, however, provides for an escape route to an assessee. Clause (2) of such later portion of explanation provides that if in the course of the search, the assessee makes a statement under su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for an assessee to state and make averments in the exact format stipulated by the provisions considering the setting in which such statement is being recorded, as noted by the Allahabad High Court in the case of CIT v. Radha Kishan Goel [2005] 278 ITR 454. Secondly, 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 section 132 (4) of the Act. The view taken by the Tribunal as well as the Allahabad High Court to the effect that even if the statement does not specify the manner in which the income is derived, if the income is declared and tax thereon paid, there wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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