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2016 (9) TMI 102 - AT - Income TaxPenalty u/s 271AAA - undisclosed income was admitted during search - According to the AO, bifurcation of the income, head-wise and year-wise, was not given in this statement under section 132(4) of the Act. Year-wise and assessee-wise break up was given by the group subsequently - Held that:- Sub-section 2 provides that sub-section 1 of Section 271AAA would not be applicable upon an assessee if he fulfills the following conditions viz. (a) that the assessee in the course of search, in a statement under sub-section (4) of section 132 admits the undisclosed income and specifies the manner in which such income has been derived, and (b) substantiate the manner in which the undisclosed income was derived, and (c) pays the tax together with interest, if any, in respect of undisclosed income. As far as the fulfillment of clause (c) is concerned, there is not dispute between the parties. Similarly, assessee has disclosed the income during the course of search. The dispute between the parties is whether the assessee has specified manner in which such income has been derived and substantiate the manner in which undisclosed income was derived. The AO has simply observed that the assessee has not admitted the income himself and has not disclosed the manner. The income was disclosed by the son of the assessee. It is pertinent to say that the statement of Shri Rajesh M. Shah was recorded on behalf of group itself. He has specified the income of ₹ 25 crores not only assessable in his hand, but pointed out that it will be allocated between different entities and the persons. He has also disclosed the manner in which the income was derived. All these aspects have been specifically considered by the ld.First Appellate authority in the finding extracted supra. After perusal of the finding of the ld.CIT(A), see no reasons to interfere in it. - Decided against revenue
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