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2022 (9) TMI 1316 - AT - Income TaxPenalty imposed u/s. 271AAA - voluntary admission towards undisclosed income - HELD THAT:- From the perusal of the provisions of section 271AAA(2), we note that upon complying with the three conditions mentioned therein, penalty under section 271AAA(1) is not imposable. The first condition requires that the assessee admitted in the course of search in the statement recorded under section 132(4) of the Act, the undisclosed income and specifies the manner in which such income has been derived. The second condition requires that the assessee substantiates the manner in which the undisclosed income was derived. From the statement recorded of the assessee reproduced above, it is evident that both these conditions had been complied by the assessee. The third condition requires that the assessee pays the tax together with interest in respect of the undisclosed income. Fulfilment of this condition has also been evidently demonstrated by the Ld. Counsel by pointing out that assessment was completed with a tax effect of ₹ 19.50 lakhs which was adjusted with the seized amount of cash and the remaining amount was returned to the assessee. We find ourselves convinced with the conspectus of above factual matrix and the submissions made by the assessee and accordingly have no hesitation in directing the AO to delete the penalty imposed under section 271AAA of the Act in the sum - Accordingly, grounds raised by the assessee are allowed.
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