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2015 (3) TMI 797 - AT - Income TaxPenalty imposed by AO u/s 271AA - surrender of ₹ 50 crores, as the assessee had not substantiated the manner in which the undisclosed income was derived with any corroborative evidence - CIT(A) deleted penalty levy - Held that:- Assessee replied all the questions of revenue authorities in the statement recorded on 4.3.2010 u/s 132(4) of the Act. We further note that during the assessment proceedings, the assessee in his reply dated 25.7.2011, further submitted details of the surrendered income of ₹ 50 crore and submitted that he had entered into various speculative transactions and also transaction related to properties during the period from 1.4.2009 to 4.3.2010 i.e. FY 2009-10 relevant to AY 2010-11 and the said transactions were carried out in an unrecognised manner and neither any accounting records nor any documentary evidence/support in respect of these transactions/activities carried out by the assessee were maintained. Under these facts and circumstances of the case and in the light of decision of ITAT Delhi “E” Bench in the case of Neeraj Singal[2013 (6) TMI 762 - ITAT DELHI], we are of the opinion that the present case is squarely covered in favour of the assessee by the decisions of of CIT vs Radha Kishan Goel (2005 (4) TMI 47 - ALLAHABAD High Court ), by the decision of Hon’ble Gujarat High Court in the case of CIT vs Mahendra C. Shah (2008 (2) TMI 32 - GUJARAT HIGH COURT) in favour of the assessee and hold that in absence of specific query raised by the authorised officer during the course of recording of statement u/s 132(4) of the Act about the manner in which undisclosed income has been derived and AO was not justified in imposing penalty u/s 271AAA of the Act. We also notice a peculiar fact of the present case that during the course of assessment, replying to the query of the AO, the assessee vide his reply dated 25.7.2011, as reproduced hereinabove, explained the manner in which the undisclosed income has been derived which cannot be ignored. Therefore, we reach to a logical conclusion that the CIT(A) was right in granting relief for the assessee in deleting the penalty and we are unable to see any controversy or any other valid reason to interfere with the same - Decided in favor of assessee.
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