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2018 (9) TMI 1324 - HC - Income TaxPenalty u/s. 271AAA - undisclosed income - failure to prove the manner in which income has been earned - disclosure made with the consent of the family members and all partners - Held that:- Answer of partner to the addition to confirming the disclosure of undisclosed income, further stated that the income was earned by the group out of land related transactions which was not previously recorded in the books. This was thus specifically in compliance with the requirement of establishing the manner, in which, the income was earned. It is true that at this stage, he could not give the break up of such income person wise or firm wise citing the reason of sealing of the bank locker. In our opinion, this would not be of much relevance. Firstly as noted, the answer was in sufficient compliance of requirement of manner of earning income. Secondly, as recorded by the CIT (A), AO had made additions taxing the admitted amounts in respective hands. We are primarily of the view that there is substantial compliance by the assessee. We do not see any reason to disturb the Tribunal's order, however, for the reasons somewhat different from those recorded by the Tribunal. The addition outside of the disclosures by the assessee are not significant.
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