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2017 (4) TMI 1429 - ITAT AHMEDABADPenalty u/s 271AAA - assessee failed to disclose the manner of earning this undisclosed income of ₹ 15 crores - HELD THAT:- A bare perusal of this section would indicate that sub-section (1) authorise the AO to levy penalty at the rate of 10% of the undisclosed income of the specified previous year. Sub-section (2) provides conditions on whose fulfillment the assessee could be absolved from the levy of penalty. A perusal of sub-section (2) would indicate that it postulates three conditions for an assessee on whose fulfillment he will be absolved from levy of penalty. In the present case, in the assessment order the AO himself did not dispute that during the course of search, it was admitted by Shri Alpeshbhai Kotadiya that this income was earned by accepting on-money in its building project “Green City”. This manner has also been disclosed. It has also been pointed out that the undisclosed income was received by the assessee as on-money. Thus, taking into consideration facts and circumstances, we are of the view that the CIT(A) has rightly deleted the penalty, and accordingly, we dismiss the appeal of the Revenue.
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