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2017 (10) TMI 935 - AT - Income TaxPenalty levied u/. 271ÀAA - income disclosed u/s. 132(4) - Held that:- As rightly noted by the Ld. CIT(A) that as apparent from the assessment order there is no finding of the AO that in the case of the assessee there was anything found in the course of search which was not recorded in the books of account. Just because the assessee has admitted additional income in the course of search it cannot be said that such additional income was undisclosed income within the meaning of undisclosed income provided under explanation to section 271AAA of the Act to impose the penalty. We agree with the Ld. CIT(A) that when the income disclosed u/s. 132(4) of the Act in the course of search itself cannot be treated as undisclosed income within the meaning of undisclosed income as provided in explanation to 271AAA the same cannot be treated as undisclosed income to impose the penalty under that section. We note that ₹ 4 lacs seized has been offered by the assessee in the disclosure petition to be taxed in the hands of M/s. Rahee Infratech Ltd. so, without the AO pointing out that the assessee had undisclosed income in the nature as given in explanation to section 271AAA of the Act, the penalty ought not to have been imposed and that has been rightly deleted by the Ld. CIT(A). - Decided in favour of assessee.
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