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2018 (3) TMI 593 - HC - Income TaxPenalty u/s 271AAA - disclosure of unaccounted income during search - source of income not discolsed - Held that:- In the present case, during the course of the statement made by the assessee, during the course of the search on 4 March, 2010, that she had lent ₹ 16 crores in aggregate to three individuals during financial year 2009-2010. This was in response to a query by the revenue officials during the course of search when the basis of Page 81 of Exhibit A-3 was sought to be questioned. - The requirement of the assessee having to “(ii) substantiates the manner in which the undisclosed income was derived” was satisfied. Although a general statement that the undisclosed income was the source income that was disclosed, no “substantiation” of the “manner” of deriving such undisclosed income was revealed. The income which was ultimately brought to tax pursuant to the disclosure made, which was voluntary on the part of the assessee is stating the obvious. The assessee merely stated that the sums advanced were undisclosed income. However, she did not specify how she derived that income and what head it fell in (rent, capital gain, professional or business income out of money lending, source of the money etc). Unless such facts are mentioned with some specificity, it cannot be said that the assessee has fulfilled the requirement that she, in her statement (u/s 132 (4)) “substantiates the manner in which the undisclosed income was derived”. Such being the case, this court is of opinion that the lower appellate authorities misdirected themselves in holding that the conditions in Section 271AAA (2) were satisfied by the assessee. - Decided in favour of revenue.
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