Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 453 - AT - Income TaxPenalty u/s 271AAA - Whether the assessee has disclosed manner and substantiate that manner? - Held that:- The assessee has admitted additional income of ₹ 23 crores whose break up has been given in the statement itself. Name of the assessee is available at serial no6. This statement is based on the noting found in the diary. Deponent has duly explained that amounts mentioned against each entity was in coded word viz. instead of ₹ 5 lakhs it should be read as 5 crores two “Os” are to be added. He further disclosed that this is the net taxable income written in this diary. Thus, he has offered an income of ₹ 1.14 crores. The assessee has paid taxes as well as interest. The dispute between the assessee and Revenue pertained to condition no.2 that is whether the assessee has disclosed manner and substantiate that manner. In order to evaluate circumstances pertained to this condition, we find that reply to question 15 would show that group had different projects which have constructed building, thereafter, they have excluded certain amounts on a net basis from these projects, which were not accounted in the books. On account of search and seizure of the incriminating material, this net income was offered for taxation. The manner was disclosed as out of various housing projects constructed by the group. Apart from these questions, no other question relating to manner and substantiate earning of such income was asked from the assessee during the course of assessment proceedings. The AO has nowhere asked the assessee to demonstrate the manner or substantiate that manner. Thus, we are of the view that the ld.CIT(A) has rightly deleted the penalty - Decided in favour of assessee
|