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2016 (4) TMI 949 - AT - Income TaxPenalty levied u/s 271AAA - assessee has not explained the manner in which the undisclosed income has been derived - Held that:- In the present case on hand, on perusal of the facts, we find that the assessee has admitted the undisclosed income at the time of search, while recording the statement u/s 132(4) of the Act. The assessee has explained the manner in which such undisclosed income has been derived. It was the explanation of the assessee that the undisclosed income was derived because of suppression of sales turnover relates to his business. The assessee further explained that the suppressed sale was on account of sale of flats, which were not disclosed in the regular books of accounts. The assessee explained the undisclosed income even at the time of search while recording statement u/s 132(4) of the Act and also explained before the A.O. at the time of assessment, which was evident from para-5 and 5.1 of the assessment order. Therefore, in our considered opinion, clause (i) & (ii) of sub section (2) of section 271AAA of the Act is fulfilled and hence, no penalty can be levied u/s 271AAA of the Act. On perusal of the facts available on record, it was clear that the assessee has paid the entire self assessment tax admitted in the revised return before initiation of penalty proceedings u/s 271AAA of the Act. Though assessee has not paid the total taxes along with revised return of income, it has explained the reasons for non-payment of taxes before completion of assessment, however, has paid the total taxes before initiation of penalty u/s 271AAA of the Act. Therefore, in our opinion, the assessee has fulfilled the clause (iii) of sub section (2) of section 271AAA of the Act, hence, no penalty can be levied u/s 271AAA of the Act as held by the Hon’ble Supreme Court in the case of ACIT Vs. Gebilal Kanhaialal (HUF) (2012 (9) TMI 297 - SUPREME COURT ). - Decided in favour of assessee
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