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TMI Blog2017 (6) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act in which he made a disclosure of Rs. 5 crores. Out of this disclosure, Rs. 4,23,31,392/- was offered by the assessee for the year consideration. 6. Subsequently, the disclosure of Rs. 5 crores was bifurcated between the assessee and his father Shri Jayantibhai Patel and the break up reads as under:- A.Y. Sureshbhai Patel (Amount in Rs.) Jayantibhai Patel (Amount in Rs.) 2006-07 ---------------- 5,50,000/- 2007-08 34,00,000/- -------------- 2010-11 32,22,958/- 4,95,650/- 2-11-12 4,23,31,392/- (72,29,667+ 3,51,01,725) -------------------- Total Rs. 4,89,54,350/- Rs. 10,45,650/- Rs. 5,00,00,000/- 7. The search party found unexplained investment in cars, jewellery, watches and also 52,00,000/- on account of cash was found at the time of search. The assessee declared Rs. 3,51,01,725/- voluntarily in the return of income for A.Y. 2011-12 to make up total disclosure of Rs. 5 crores. Thus, the total disclosure for A.Y. 2011-12 was at Rs. 4,23,31,392/- and after claiming depreciation on motor vehicles, the disclose taxable income was at Rs. 4,10,61,220/-. 8. The A.O. issued show cause notice to the assessee and as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Mahedra C. Shah 299 ITR 305. Per contra, the ld. D.R. strongly supported the findings of the revenue authorities. 15. We have given a thoughtful consideration to the orders of the authorities below. We have also carefully perused the assessment order. There is no dispute that the assessee had voluntarily offered undisclosed income of Rs. 4,23,31,392/- in his return of income for the year under consideration. Before proceeding further, les us understand the provisions of Section 271AAA of the Act which read as under:- 271AAA. (1) Te Assessing Officer may, notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search has been initiated under section 132 on or after the 1st day of June, 2007 [but before the 1st day of July, 2012], the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year. (2) 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 man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly true that the assessee has paid the taxes along with interest thereon in respect of the undisclosed income. 17. Now the question arises is whether the manner in which such income has been derived and whether it has been substantiated was explained by the assessee. The relevant question put to the assessee during the course of the recording of the statement u/s. 132(4) of the Act read as under:- Statement on oath/solemn affirmation recorded from Shri Sureshbhai J. Patel son of Jayantibhai Balubhai Patel on 09.06.2010 during the course of search proceedings at 'Shiv Sadan', B/d. Ichchhanath Temple, Surat Sd/- Sd/- Suesh J. Patel Rajeshkumar Lal 09.06.2010 Income Tax Officer (Inv.), Surat 09.06.2010 Q:22 You have not prepared any accounting records of yourself as well as your family members. During the course of search proceedings at your residence, cash amounting to Rs. 52,75,900 has been found. Other than this, I am showing you Annexure A-1 to Annexure A-4. After considering all these things do you want to say anything? A:22 According to my knowledge majority of cash out of the amount of Rs. 52,75,900 is from agricultural activities. However, I ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been recorded on or before the date of search in the books of account or other documents maintained in the normal course relating to such previous year; or (B) otherwise not been disclosed to the [Principal Chief Commissioner or] Chief Commissioner or [Principal Commissioner or] Commissioner before the date of search; or (ii) any income of the specified previous year represented, either wholly or partly, by any entry in respect of an expense recorded in the books of account or other documents maintained in the normal course relating to the specified previous year which is found to be false and would not have been found to be so had the search not been conducted; (b) "specified previous year" means the previous year- (i) which has ended before the date of search, but the date of filing the return of income under sub-section (1) of section 139 for such year has not expired before the date of search and the assessee has not furnished the return of income for the previous year before the said date; or (ii) in which search was conducted.] 21. If this definition of undisclosed income is considered in the light of the facts of the case in hand, the unaccounted wealth unearthed d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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