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2014 (3) TMI 1140 - AT - Income TaxPenalty u/s 271AAA - assessee has not specified the manner in which the income is derived in his statement recorded u/s 132(4) - surrender of income u/s 132(4) - Held that:- From the statements, we have observed that the authorized officer has not specifically asked to the assessee during such proceedings about the manner in which the assessee has earned undisclosed income. Regarding observation of the A.O. that the assessee should have appealed against the initiation of penalty proceedings, there is no such provision u/s 246(1) to file appeal against such initiation of penalty proceedings. Also the A.O. without making further addition assessed the income at returned income in the assessment order. Thus, the observation of the A.O. that the assessee had intentionally evaded tax is based on incorrect facts. The assessee has explained the modus of earning this income in his statement either u/s 132(4) and 131 of the Act. It is true that no specific manner of disclosing the undisclosed income is provided in the Act. Therefore, only on this ultra technical point, penalty u/s 271AAA of the Act cannot be imposed - Decided against revenue.
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