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2021 (10) TMI 406 - AT - Income TaxPenalty order u/s 271AAA - disclosure of additions income pursuant to search u/s 132 - whether the assessee has complied with all the three conditions as prescribed under the provision of section 271AAA? - HELD THAT:- The three conditions mentioned in the provision of section 271AAA are (i) that the assessee should admit the undisclosed income in a statement made u/s 132(4) of the Act. (ii) The assessee specify the manner in which such income has been derived and substantiate the manner in which the undisclosed income was derived. (iii) The assessee should pay the taxes together with interest in respect of undisclosed income. In the present case the assessee has disclosed the entire source of income and manner of undisclosed income earned - assessee has also paid the taxes and the details - The assessee has admitted the undisclosed income and voluntarily declared the same under section 132 (4) of the Act on the basis of accounting records consisting of its income from all the sources. It means that the assessee has complied with all the conditions mentioned in section 271AAA(2) of the Act and once the assessee has complied with all the conditions the assessee should not be called upon to pay a penalty under this section. As assessee has complied with the conditions of section 271AAA(2) of the Act, the assessee is not liable for penalty under this provision. Appeal of the assessee is allowed.
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