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2019 (10) TMI 446 - GUJARAT HIGH COURTPenalty u/s. 271AAA(2) - Assessment order u/s.143(3) r.w.s. 153 after search u/s 132 - fulfilling the pre-conditions - HELD THAT:- As per settled legal position, where the revenue had failed to question the assessee while recording the statement under section 132(4) of the Act as regards the manner of deriving such income, it cannot jump to the consequential or laster requirement of substantiating the manner of deriving the income. It is only when the officer elicits a response that such a requirement, the assessee's responsibility to substantiate manner of deriving such income would commence. When the base requirement itself fails, the question of denying the benefit of no penalty would not arise. After the director responded to question Nos.7 and 8, nothing further was asked and hence he cannot be faulted for not giving further details. Assessee has failed to fulfill the preconditions laid down under section 271AAA(2) is devoid of merits. the assessee has stated in the answer that from where the income was earned. Thereafter he cannot be blamed that he has not substantiated the manner in which the disclosed income was derived. If there was any doubt in the mind of the revenue, they should have asked further question about it when initial onus placed by the explanation has been discharged by him, the onus shifts on the revenue. If no further question are asked, the matter ends there. In light of the above discussion, there is no infirmity or otherwise in the impugned order passed by the tribunal. Both the appeals are therefore, fail and deserve to be dismissed and are accordingly dismissed.
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