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2016 (9) TMI 643 - AT - Income TaxPenalty u/s 271AAA - Department has accepted the quantum of surrender made by the assessee in his statement recorded u/s 132(4) of the Act. The taxes due thereon have also been paid - Held that:- On having gone through the queries raised while recording the statement of the assessee u/s 132(4) of the Act, it is evident that nowhere has the Authorized Officer asked a specific question with regard to the manner in which the undisclosed income has been derived. Thus in absence of query raised by the Authorized Officer during the course of recording of a statement u/s 132(4) about the manner in which the undisclosed income has been derived and about its substantiation, the AO was not justified in imposing penalty u/s 271AAA of the Act specially when the offered undisclosed income has been accepted with a very minor variation of ₹ 49,250/- and also the due tax thereon has been paid by the assessee. As the case of DCIT vs. Pioneer Marbles & Interiors (P) Ltd. (2012 (2) TMI 261 - ITAT, KOLKATA ) for confirming the penalty is misplaced as in this case the coordinate Kolkata Bench has held that where the entire tax and interest has been duly paid well within the time-limit for payment of notice of demand u/s 156 and well before the penalty proceedings were concluded, the assessee could not be denied immunity u/s 271AAA(2) only because the entire tax, along with interest, was not paid before filing of income tax return or, for that purpose, before concluding the assessment proceedings. We, thus, set aside the order of the ld. CIT (Appeals) and direct the AO to delete the penalty - Decided in favour of assessee.
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