TMI Blog2012 (10) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... arch u/s 132(4) came to a conclusion that the assessee was never asked about the manner in which the income was earned, nor that she was even asked to substantiate the manner in which undisclosed income was arrived - in favour of assessee. - ITA No: 3372/Del/2011 - - - Dated:- 12-10-2012 - SHRI J. SUDHAKAR REDDY, AND SHRI RAJPAL YADAV, JJ. Appellant by : Shri Chandrasekhar, C.A. Respondent by : Sh.Gunjan Prasad, CIT (DR) O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER This appeal has been filed by the assessee against the order of the Ld.CIT(A) dt. 26.5.2011 for the Assessment Year 2008-09 on the following grounds. 1. That on the facts and the circumstances of the case, the judgement of Hon ble Supreme Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitiated wide notice dated 31.12.2009. After considering the submissions of the assessee penalty of Rs.25 lakhs was imposed vide order dated 28.06.2010. 4. On appeal, the First Appellate Authority confirmed the penalty. Aggrieved the assessee is in appeal before us. 5. The Ld. Council for the assessee Mr. Chandrasekhar submitted that similar issue has come up in appeal before the F bench of the Delhi Tribunal in the case of Smt. Raj Rani Gupta in ITA no.3371/Del/2011 order dated 30.03.2012 and the Tribunal deleted the penalty. The Ld. DR Mr.Gunjan Prasad, though not leaving his ground submitted that similar penalty arising out of the very same search proceedings in the group and on similar facts was deleted by the Tribunal. 6. Aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the person to state those things, which are not asked by the authorized officer. It is a matter of common knowledge, which cannot be ignored that the search is being conducted with the complete team of the officers consisting of several officers with the police force. Usually telephone and all other connections are disconnected and all ingress and egress are blocked. During the course of search person is so tortured harassed and put to a mental agony that he loses his normal mental state of mind and at that stage it cannot be expected from a person to pre-empt the statement required to be given in law as a part of his defence. In these circumstances, we are of the view that under Section 132(4) of the Income Tax Act, 1961 unless the au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income Tax Act, 1961 regarding the manner in which such income has been derived, suffice it to state that when the statement is being recorded by the authorized officer it is incumbent upon the authorized officer to explain the provisions of Explanation 5 in its entirety to the assessee concerned and the authorized officer cannot stop short at a particular stage so as to permit the Revenue to take advantage of such a lapse in the statement. The reason is not far to seek. In the first instance, the statement is being recorded in the question and answer form and there would be no occasion for an assessee to stage and make averments in the exact format stipulated by the provisions considering the setting in which such statement is being ..... X X X X Extracts X X X X X X X X Extracts X X X X
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