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2018 (7) TMI 2054 - HC - Income TaxPenalty u/s 271AAA - assessee did not disclose the source of undisclosed income unearthed at the time of search - HELD THAT:- CIT(A) deleted the said penalty levied under Section 271AAA of the Income Tax Act, which has been confirmed by the learned Tribunal, after following the decision of the Division Bench of this Court in the case of Principal Commissioner of Income Tax Vs. Mukeshbhai Ramalal Prajapati [2017 (7) TMI 966 - GUJARAT HIGH COURT] Revenue failed to question the assessee while recording his statement under section 132 (4) of the Act as regards the manner of deriving such income, the Revenue cannot jump to the consequential or later requirement of substantiating the manner of deriving the income. In the context of the requirement of the assessee specifying the manner of deriving the income the decision of this Court in case of Commissioner of Income Tax vs. Mahendra C.Shah [2008 (2) TMI 32 - GUJARAT HIGH COURT] would hold the field even in the context of sub-section (2) of section 271AAA of the Act. It is only when the officer of the raiding party recording the statement of the assessee under section 132(4) of the Act elicits a response from the assesse's this requirement, the assessee's responsibility to substantiate the manner of deriving such income would commence. When the base requirement itself fails, the question of denying the benefit of no penalty would not arise. No substantial question of law.
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