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2019 (8) TMI 838 - ITAT MUMBAIPenalty u/s 271AAA r.w.s 274 - specify and substantiate the manner in which undisclosed income was earned - undisclosed income was declared in his statement recorded u/s 132(4) during the course of the search proceedings - HELD THAT:- As the assessee had failed to specify and also substantiate the manner in which the undisclosed income of ₹ 1 crore that was admitted in his statement recorded under sub-section (4) of Sec.132, was derived by him, therefore, the conditions envisaged in clause (i) and clause (ii) of sub-section (2) of Sec.271AAA, had not been satisfied. General statement of the assessee that as he was mainly dealing in land, therefore, the cash balance available with him was generated due to various purchase and sale transactions can by no means be comprehended to have satisfied the aforesaid statutory requirement contemplated in sub-section (2) of Sec. 271AAA. Accordingly, the ‘affidavit’, dated 22.01.2015 filed by the assessee merely making a mention of the aforesaid facts would also not come to the rescue of the assessee insofar satisfaction of the conditions envisaged in clause (i) and clause (ii) of sub-section (2) of Sec.271AAA is concerned. Even in the return of income filed by the assessee the undisclosed income of ₹ 1 crore that was declared by him in his statement recorded u/s 132(4) had been merely put under the head “business income”, which also does neither specify nor substantiates the manner in which the undisclosed income that was declared in his statement recorded under Sec.132(4) , was derived by him. Accordingly assessee had failed to both specify and substantiate the manner in which the undisclosed income of ₹ 1 crore declared in his statement recorded u/s 132(4) was derived by him, therefore, the CIT(A) vide his order dated 16.10.2017 had rightly upheld the penalty u/s 271AAA - Decided against assessee.
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