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2019 (8) TMI 1262 - AT - Income TaxPenalty u/s 271AAB - assessee himself has surrendered undisclosed income - HELD THAT:- We found that during the course of search, one diary and Annexure-A exhibit 5 was found. In this diary certain advances given to various villagers amounting to ₹ 627 lacs was stated. Statement of assessee was also recorded U/s 132(4) of the Act on 23/1/2013 wherein in reply to question No. 8, the assessee himself has surrendered these advances as income. On this surrendered income, the A.O. has levied penalty U/s 271AAB - As observed that what have been found during the course of search are certain entries relating to investment made in purchase of land. However, the said entry in the loose paper giving advances for purchase of land itself is not an undisclosed income. Besides the said entries, there are no other documents/material in terms of any agreement to sell, description of the property etc. which was found during the course of search. As per the definition of undisclosed income u/s 271AAB, undisclosed investment in so called purchase of land cannot be stated to be income which is represented by any money bullion, jewellery or other valuable article or thing. We further observe that the assessee was having only income from house property and interest income. The diary was found on the basis of which disclosure was made also contained list of advances made which formed basis of disclosure by the assessee. Since the assessee was not carrying on any business, he was not required to maintain any such books of account under the law. The amount so surrendered was duly recorded in other documents maintained in the normal course and therefore, the same cannot be said to be undisclosed income. CIT(A) has dealt with the issue threadbare and after applying the various judicial pronouncements including pronouncements of the Coordinate Bench in the cases of Ravi Mathur Vs DCIT [2018 (6) TMI 1128 - ITAT JAIPUR] deleted the addition. - Decided against revenue.
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