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2017 (4) TMI 250 - AT - Income TaxPenalty u/s 271AAA - assessment pursuant to search - Held that:- On-money received was offered for taxation in the hands of the assessee. No doubt, sub-clause (ii) of section 271AAA postulates three conditions required to be fulfilled by the assessee in order to absolve herself from the rigours of penalty. This condition has been reproduced by the ld.CIT(A) in the impugned order extracted (supra). The AO did not dispute with regard to fulfillment of conditions under clause (i) and (iii) of sub-section (2). His area of grievance is that the assessee failed to fulfill the conditions mentioned in sub-clause (ii) that is manner of earning such income and also failed to substantiate the manner. A perusal of the statement of Shri Shailesh G. Patel who has made a disclosure would indicate that not only he disclosed the income, but also substantiated the manner of earning income by pointing out that it was on-money; it was received through account payee cheque. This deposition could not be refuted by the Revenue and the assessee does not deserve to be visited with penalty. The ld.CIT(A) has rightly appreciated the facts and rightly deleted the penalty. We do not see any reason to interfere in the order of the ld.CIT(A), hence, the appeal of the Revenue is dismissed.
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