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TMI Blog2015 (10) TMI 2310X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case, the ITAT was justified in dismissing the departmental appeal and upholding the decision of CIT(A) order while two out of three conditions prescribed in section 271AAA are not fulfilled ?" 2. The assessment year is 2008-09. A search under section 132 of the Act came to be carried out at the assessee's business premises. During the course of search, the assessee had disclosed unaccounted income of Rs. 2,00,00,000/- for the financial year 2007-08, that is, for assessment year 2008-09 which was included in the total income of Rs. 2,25,57,824/- in the return of income that was filed by the assessee on 26.9.2008. The assessment came to be framed under section 143(3) of the Act by an order dated 24.4.2009 whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Commissioner (Appeals), to submit that from the statements of the said two persons it cannot be said that the assessee had specified the manner in which such income had been derived or that the assessee had substantiated the manner in which the undisclosed income was derived. It was, accordingly, urged that the Tribunal has failed to appreciate the evidence on record in proper perspective while upholding the order passed by the Commissioner (Appeals). It was, accordingly, urged that the appeal requires consideration on the question as proposed or as may be formulated by this court. 4. This court has considered the submissions advanced by the learned counsel for the appellant and has perused the impugned order passed by the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 132(4) of the Income Tax Act. The AO has levied the penalty u/s.271AAA of the Act because the first two conditions of section 271AAA(2) are not fulfilled by the appellant. The three conditions provided in sub section (2) of section 271AAA are reproduced as under : (i) In the course of search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specified the manner in which such income has been derived; (ii) Substantiates the manner in which the undisclosed income was derived; and (iii) Pays the tax together with interest, if any, in respect of the undisclosed income. Clause (i) lays down the first condition that undisclosed income should have been admitted by the assessee in the statement u/s. 132(4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y was having business of dyeing and printing of textile. Clause (ii) lays down the second condition that assessee should substantiate the manner in which undisclosed income has been derived. The key person of the group Shri Jaiprakash K. Aswani, in his statement recorded u/s.132(4) on 19 & 20.2.2008, in reply to question no.11, made disclosure of total income of Rs. 20.23 crores and has provided bifurcation of undisclosed income in different hands and made disclosure of Rs. 2.00 crores in the hands of the assessee company. In the same question the Authorised Officer mentioned that it was established that the assessee earned income from on money received from booking of residential properties and textile business and substantiated the mann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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