TMI Blog2016 (7) TMI 1038X X X X Extracts X X X X X X X X Extracts X X X X ..... project wise break up in order to account for the above undisclosed income in the form of receivables from customers. This was followed by assessment of the above stated undisclosed income and payment of taxes. It has come on record that the Revenue authorities did not even make a suggestion during search doubting veracity of the assessee’s disclosure. We are of the opinion in these facts and circumstances that the CIT(A) has rightly held the assessee to have satisfied all the three necessary three conditions for claiming section 271AAA(2) immunity i.e. it admitted undisclosed income of ₹ 1.15 crores, specified manner of having derived the same followed by substantiation thereof and paid taxes thereupon - Decided against revenue - I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings. The assessee pleaded that it had already satisfied all necessary conditions in order to avail immunity stated hereinabove. It emphasized that the departmental authorities did not put up any specific query in course of search at the time of the disclosure in question. The Assessing Officer concluded in the penalty order that the assessee had not specified the manner of deriving of the impugned undisclosed income along with substantiation. He accordingly imposed the penalty in question of ₹ 11.15 lacs. 4. The assessee preferred appeal. The CIT(A) accepts the same as follows:- 8. I have gone through the facts of the case, the observation of the AO and the submissions of the appellant. There is no dispute that the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te and make averments in the exact format stipulated by the provisions considering the setting in which such statement is being recorded. Secondly, considering the social environment it is not possible to expect from an assessee, whether literate or illiterate, to be specific and to the point regarding the conditions stipulated in the second exception while making statement under section 132(4). Even if the statement does not specify the manner in which the income is derived, if the income is declared and tax thereon paid, there would be substantial compliance not warranting any further denial of the benefit. The scope and meaning has been lucidly explained by the Hon'ble Allahabad High Court in the case of CIT vs. Radha Kishan G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and declared that this is the 'on money' on sale of flats/units and 'is net income on which no expense is further deductable or to be debited. v. The appellant was asked to show the treatment of this income in the service tax return (refer para 7.2 of this order). The appellant has shown in response that the declaration (no. 2013106) has been made before the service tax department on 23.10.2013 to declare service tax on this undisclosed income being the undisclosed revenue earned and subsequently taxes have been paid and the declaration accepted under the voluntary disclosure scheme. Without any doubt the nature of income has been in words and action has been shown to be revenue income earned as 'on money' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, hold that the penalty levied by the A.O. to the tune of ₹ 11,50,000/- is unjustified and it is directed to be deleted. 5. The Revenue strongly argues that the CIT(A) admitted additional evidence in course of the lower appellate proceedings. No such case is being made out after perusing the lower appellate order. This plea is accordingly rejected. The Revenue s next argument seeks to revive the impugned section 271AAA penalty by drawing support from penalty order. It however fails to place any material on record rebutting the above extracted finding that assessee s partner Shri Rajeevbhai Patel had made the disclosing in question on the basis of documents seized, he gave project wise break up in order to account for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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