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2018 (3) TMI 950 - AT - Income TaxPenalty u/s.271AAA - undisclosed income addition - assessee’s failure in specifying the manner of having derived the above undisclosed income as well as substantiation thereof during the course of search as well as assessment proceedings - CIT-A deleted the addition - Held that:- fails to rebut the CIT(A)’s clinching finding that no such query of manner of deriving the impugned undisclosed income had been put to the assessee by the authorized officer whilst recording the search statement in question. We notice in this backdrop that in recent judgment in PCIT vs. Mukeshbhai Ramanlal Prajapati [2017 (7) TMI 966 - GUJARAT HIGH COURT] holds that it is incumbent for the authorized officer to question the assessee about the relevant manner of having derived the undisclosed income in question and then only the onus shifts on the tax payer to substantiate the same. The field even in the context of sub-section (2) of section 271AAA of the Act. It is only when the officer of the raiding party recording the statement of the assessee under section 132(4) of the Act elicits a response from the assessee's this requirement, the assessee's responsibility to substantiate the manner of deriving such income would commence. When the base requirement itself fails, the question of denying the benefit of no penalty would not arise. - Decided against revenue
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