TMI Blog2012 (5) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... tage of assessment proceeding assess was asked, either by the authorized officer or by the A.O., to substantiate the manner in which this undisclosed income was derived. Under these circumstances, the assessee be deemed to have discharged his onus of substantiating the manner in which this undisclosed income was derived by him and therefore it cannot be said during penalty proceeding that assessee did not fulfill this condition. No infirmity in the order of ld. CIT(A) deleting this penalty - Decided in favour of assessee. - I.T.A. No.525/Ahd/2012 - - - Dated:- 4-5-2012 - Shri D.K. Tyagi, Judicial Member And Shri A.K. Garodia, Accountant Member For the Petitioner : Shri B.L. Yadav, Sr. D.R. For the Respondent : None ORD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion the reply of the assessee a penalty of ₹ 5,00,000/- was levied as according to the A.O., the Assessee failed to fulfill the conditions as laid down u/s 271AAA(2) of the Act. In appeal the ld. CITA(A) deleted this penalty by holding that assessee has satisfied all the conditions, as laid down u/s 271AAA(2) of the Act by relying on the decision of Hon ble Gujarat High Court in the case of CIT Vs. Mahendra C Shah (2008) 299 ITR 305 and Hon ble Allahabad High Court decision in the case of CIT Vs. Radha krishna Goel (2005) 278 ITR. 5. Aggrieved by this order of ld. CIT(A) now the revenue is before us. 6. At the time of hearing ld. D.R. relied on the order of the A.O. and further submitted that the case laws relied upon by the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to take note of the exemption provision of Section 271AAA(2) which reads as under:- Nothing contained in sub-section (1) shall apply if the assessee- (i) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which 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. 8. According to the A.O., since assessee has complied with only third condition and not other two conditions out of above three, penalty u/s 271AAA was levied while ld. CIT(A) has held otherwise. As far as first condition is con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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