TMI Blog2017 (7) TMI 773X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. Impliedly, the Revenue admits that the assessee has not failed to substantiate the manner in which the undisclosed income derived. This being so, it follows by necessary implication that the assessee has not failed to specify the manner at the first place when substantiation thereof has not been called into question by the Revenue. Thus, the case of the Revenue requires to be summarily dismissed on this ground alone. Notwithstanding, we further note that the assessee has replied to the query raised while recording the statement as called for. The revenue does not appear to have quizzed the assessee for satisfying the manner in which the purported undisclosed income has been derived. We simultaneously note that no where in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at ₹ 2,21,69,566/- under s.153A of the Act was assessed at the same figure and penalty under s.271AAA was imposed by the Assessing Officer (AO) for AY 2010-11 vide order dated 29/05/2012 on the ground that conditions specified in section 271AAA for exoneration from penalty has not been satisfied by the assessee. He accordingly imposed penalty of ₹ 20 lakhs on the undisclosed income found as a result of search at ₹ 20lakhs. 3. The assessee preferred appeal against the aforesaid penalty order of the AO before the CIT(A). 4. The CIT(A) answered the appeal in favour of the assessee with outright deletion of penalty under s.271AAA of the Act. The CIT(A) found that exception provided in section 271AAA for non-imposition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) pays the tax, together with interest, if any, in respect of the undisclosed income. 6.1 In the case of the appellant, it is seen that the undisclosed income of ₹ 2 crore was admitted during the course of search and it was mentioned by the assessee in his statement that it was earned from taxable business. It was also admitted that this income of ₹ 6 crores was unaccounted income of the group and the same was not reflected in any books of accounts of any person or concern of the appellant group. Moreover, it has also been clearly substantiated by the appellant in his statement that the declaration of said undisclosed income earned was based on entries as mentioned in the impounded documents inventorized as Annexure B1-1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant as the facts in the instant case are applicable all the more, applying with the exemption provisions of sub section (2) of section 271AAA. b) There are few more court decisions where the Hon'ble courts have held that - i) Sulochanadevi A. Agrawal (ITA No. 1052/Ahd/2012) In this case, the assessee had voluntarily disclosed a sum of ₹ 50 lacs during the search with a request that the penalty should not be levied and the the post search proceedings, the specific question regarding manner of earning of undisclosed income or substantiation thereof was not putforth by the Revenue and the taxes were duly paid. ii) Similar view has been held by the Hon'ble ITAT., Mumbai in the case of Gulabrai V. Gan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 6/11/2015. The Ld.AR submitted that no specific question has been put in the statement recorded under s.132(4) about the manner in which the undisclosed income has been derived. The so-called undisclosed income as per statement under s.132(4) of the Act was included in the return of income and taxes due thereon has been paid along with return of income. Therefore, there is no warrant for the AO to invoke section 271AAA and impose penalty of ₹ 20 lakhs on the assessee. The ld.AR submitted that the CIT(A) appreciated the facts in perspective and deleted the penalty. 8. We have carefully considered the rival submissions. 9. The ground of appeal raised by Revenue reads as under:- The Ld.CIT(A) has erred in law and on facts in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstantiate the manner in which the undisclosed income was derived. Thus, sub-section (2)(ii) finds its genesis from sub-section 2(i) of the Act. Admittedly, the Revenue is not aggrieved by the condition stipulated in sub-section 2(ii) of the Act. Impliedly, the Revenue admits that the assessee has not failed to substantiate the manner in which the undisclosed income derived. This being so, it follows by necessary implication that the assessee has not failed to specify the manner at the first place when substantiation thereof has not been called into question by the Revenue. Thus, the case of the Revenue requires to be summarily dismissed on this ground alone. Notwithstanding, we further note that the assessee has replied to the query rais ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
