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2022 (3) TMI 1076 - AT - Income TaxPenalty u/s. 271AAA - additional income admitted by the assessee in its statement u/s. 132(4) and which was declared in the return of income - HELD THAT:- It is noted that assessee in its disclosure petition has conditionally offered to cover any other undisclosed income which has been unearthed during search. This action of assessee was out of abundant caution and conditional (provided there is material suggesting any undisclosed income un-earthed during search). However, finding that there was no other undisclosed income to identify with the seized materials/Panchanama, the assessee while filing the return of income pursuant to section 153A notice did not offer ₹ 40 lakhs. AO in the assessment order dated 30.03.2015, added ₹ 40 lakhs since assessee admitted ₹ 3.78 cr. during search. And the Ld. CIT(A) deleted penalty in respect of ₹ 3.38 cr. but sustained ₹ 40 lakhs, which we do not countenance because, the addition of ₹ 40 lakhs, was not based on any material discovered during search in any form described therein the definition of un-disclosed income u/s 271AAA of the Act. It is noted that based on the bald statement of Shri Bubna ₹ 3.78 cr. (out of ₹ 34 cr.) was admitted which includes ₹ 40 Lakhs. Since ₹ 40 lakhs cannot be attributed to any money, bullion, jewellery, article or transaction or entry or documents which has not been recorded in the books for the previous year (AY 2012-13) when searched on 29.05.2012, the same cannot fall in the ken of the definition of undisclosed income for the purpose of levying penalty u/s. 271AAA - Having taking note that the amount has been brought to tax by the AO though not shown by the assessee in the Return of Income, the penalty u/s. 271 AAA of the Act cannot be legally sustained. - Decided in favour of assessee.
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