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2019 (3) TMI 494 - AT - Income TaxPenalty u/s 271AAA - undisclosed income admitted during the course of search - assessee failed to disclose the manner and substantiate the manner, how this income was earned - HELD THAT:- A conjoint reading of all the material would indicate that to the extent of ₹ 3.13 crores income was declared during the course of search by Shri Sunil P. Sewani on behalf of the assessee. This has been returned by the assessee. However, with regard to the remaining part i.e. ₹ 54.50 lakhs on account of jewellery and ₹ 12.50 lakhs on account of other discprenacy admitted in the return, there is no corresponding declaration at the time of search. Thus, qua this amount, immunity available under sub-clause (2) of section 271AAA is not available. The ld.CIT(A) has erred in deleting penalty qua this undisclosed income. Therefore, we partly allow the appeal of the Revenue and restore penalty qua addition of ₹ 54.50 lakhs and ₹ 12.50 lakhs. There will not be any penalty to the extent of undisclosed income admitted at ₹ 3.13 crores and penalty at the rate of 10% for the balance undisclosed income of ₹ 67.00 lakhs out of ₹ 3.80 crores would be calculated and levied i.e. (Rs.3.80 crores minus ₹ 3.13 crores). We partly allow the ground of appeal of the Revenue.
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