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2014 (8) TMI 759 - AT - Income TaxPenalty u/s 271AAA Proper evidences to substantiate the undisclosed income not furnished by assessee Held that:- As per CIT(A)s observation, the AO has accepted the explanation as no further corroborative adverse material was in the possession of the AO - The books of accounts stands vetted - the AO was required to form an opinion and further it must be reflected in substance for initiation of penalty proceedings - It is also not a case where specific questions were raised on the issue which could not be satisfactorily explained by the assessee - he proceeded to initiate penalty u/s 271AAA - The AO after accepting the contentions/surrender of the assessee has therefore erred in initiating the penalty and consequently levying the penalty u/s 271AAA - The overt action of the AO clearly revealed that the manner of having earned the income was accepted - Assessee has honoured the surrender made u/s 132(4) and paid the taxes thereon being part of the total surrender, which is not in dispute - The position is alike in respect of the 'surrender on account of furniture and fixtures and on account of misc. income - CIT(A) has rightly directed the AO to delete the penalty levied of ₹ 50,50,000 thus, the order of the CIT(A) is upheld Decided against Revenue.
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