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2018 (2) TMI 1287 - HC - Income TaxPenalty u/s 271AAA - assessee neither specified the manner of undisclosed income nor substantiate the manner in which the income was derived - tribunal deleted the penalty - Held that:- Commissioner of Income Tax (Appeals) as well as the Tribunal both concurrently found that all the requirements of explanation 5 below subsection (4) of section 132 of the Act were satisfied. With respect to disclosure of the manner in which the income was earned, the said authorities were of the opinion that while recording the statement of the assessee during search, no question regarding this issue was put by the Revenue officer. See Commissioner of Income Tax v. Mahendra C. Shah reported in [2008 (2) TMI 32 - GUJARAT HIGH COURT] wherein held considering the social environment it is not possible to expect from an assessee, whether literate or illiterate, to be specific and to the point regarding the conditions stipulated by Exception No. 2 while making statement under Section 132(4) of the Act. The view taken by the Tribunal as well as Allahabad High Court to the effect that even if the statement does not specify the manner in which the income is derived, if the income is declared and tax thereon paid, there would be substantial compliance not warranting any further denial of the benefit under Exception No. 2 in Explanation 5 is commendable. - Decided against revenue
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