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2016 (7) TMI 1008 - AT - Income TaxPenalty proceedings u/s. 271AAA - AO brought to tax the seized cash as income from undisclosed sources - Held that:- In the case of Concrete Developers (2013 (11) TMI 1326 - ITAT NAGPUR) the Tribunal has held that where the assessee had disclosed certain amount during the course of search and had paid taxes thereon, filed return showing said income as business income and same had been accepted by the AO under the head ‘business income’, penalty u/s. 271 AAA was not leviable. In the case of Pramod Kumar Jain (2012 (12) TMI 629 - ITAT CUTTACK ), it has been held by the Tribunal that there was no prescribed method to indicate the manner in which income was generated. Considering the facts that the assessee had paid taxes on the undisclosed income and had stated the seized cash represented his professional income, we are of the opinion that no penalty is leviable u/s. 271AAA of the Act. In our opinion, the judgment delivered by the Hon’ble Gujarat High Court in the case of Mahendra C. Shah (2008 (2) TMI 32 - GUJARAT HIGH COURT ) support the view taken by the Tribunal in the above mentioned cases. So, reversing the order of the FAA, we decide effective ground of appeal in favour of the assessee .
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