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2019 (8) TMI 238 - AT - Income TaxLevy of penalty u/s 271AAA - statement recorded u/s 132(4) - sum surrendered during the search - HELD THAT:- Assessee does not satisfy the one limb of first condition of section 271AAA(2) of the Act, i.e., admission of undisclosed in a statement u/s 132(4). As far as second limb of first condition that to specify manner of deriving the undisclosed income and second condition of substantiating the manner in which undisclosed income was derived is concerned, the Assessing Officer during assessment proceeding asked the assessee to specify and substantiate the manner of deriving the undisclosed income, however, details were not provided except the claim that the surrender/declaration was to buy peace. We are the view that the assessee cannot be said to have not satisfied the condition of specifying the manner of deriving undisclosed income as per section 271AAA in respect of surrender of amount of ₹ 20 lakh and ₹ 5 lakh against investment in property and jewellery respectively. But, if the assessee fails to satisfy any one of the conditions of section 271AAA(2), the assessee cannot escape the penalty under section 271AAA(1). Since we have already answered that the assessee failed to satisfy the one limb of first condition of section 271AAA(2), i.e., admission of undisclosed income in a statement u/s 132(4), the assessee is liable for penalty under section 271AAA. The grounds of the appeal are accordingly dismissed.
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