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2018 (3) TMI 306 - AT - Income TaxPenalty u/s 271AAA - search and seizure - Held that:- A perusal of sub-section (2) would indicate that it postulates three conditions for an assessee on whose fulfillment he will be absolved from levy of penalty. In the present case, we have perused the statement recorded under section 132(4) of the Act at the time of search. Thus, so far as first condition is concerned, the assessee should admit the undisclosed income in a statement given under sub-section (4) of section 132, that condition has been fulfilled The assessee has admitted additional income of ₹ 40 crores whose break up has been given in the explanation given before both the Revenue authorities. On account of search and seizure of the incriminating material, this income was offered for taxation. The manner was disclosed as on-money received out of various housing projects constructed by the group. Apart from this question, no other question relating to manner and substantiate earning of such income was asked from the assessee during the course of assessment proceedings. Similarly, we have gone through the assessment order. The AO has nowhere asked the assessee to demonstrate the manner or substantiate that manner. Thus, taking into consideration facts and circumstances, we are of the view that the ld.CIT(A) has rightly deleted the penalty, and accordingly, we dismiss the appeal of the Revenue.
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