TMI Blog2017 (4) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... to manner and substantiate earning of such income was asked from the assessee during the course of assessment proceedings. Similarly, we have extracted relevant part of the assessment order. The AO has nowhere asked the assessee to demonstrate the manner or substantiate that manner. Thus, taking into consideration facts and circumstances, we are of the view that the CIT(A) has rightly deleted the penalty - Decided in favour of assessee. - ITA No.1067/Ahd/2014 - - - Dated:- 6-4-2017 - Shri Rajpal Yadav, Judicial Member And Shri Manish Borad, Accountant Member Revenue by : Shri James Kurian, Sr.DR Assessee by : Shri Mehul Shah, AR ORDER RAJPAL YADAV, Revenue is in appeal before the Tribunal against order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads as under: 4. The assessee firm has carried on the construction of its own going project Western Height . Beside above the firm has sold several units in the said projects. Hence assessee firm derives income from the selling of the flats. The assessee has offered undisclosed income of ₹ 1,65,00,000/- during the year under consideration and details of which are as under:- During the search operation u/s.132 of the IT Act, 1961 one small pocket diary (i.e. K. P Diary) was recovered from the residence of Shri Manish Kantilal Shah (i.e., 41/42 Shanti Palace society, Rander Road, Surat) and seized as per BF S (Page 1 to 7). On confrontation he has admitted in his statement that pages of diary contains the entries of taxable i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 Ambica Enterprises Western Height 114000 1,14,00,000 7 7 Ambica Developer Western Business Park Western Residency 500000 5,00,00,000 Total 2315000 23,15,00,000 It is clear from the above the assessee firm has offered undisclosed income of ₹ 1,65,00,000/- for taxation for the A.Y.2011-12. From the statement of Shri Manish K Shah it is clear that the offered undisclosed income is unexplained income earned outside the books of accounts pertaining to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement recorded under section 132(4) of the Act. Such reply is available at page no.11 of the paper book. On the strength of this reply, it was contended that the assessee has disclosed complete details, and therefore, it is entitled for immunity available under section 271AAA (2) of the Act. 7. We have duly considered rival contentions and gone through the record. For appreciating the controversy involved, it is incumbent upon us to take note of section 271AAA. The relevant part of this section reads as under: 271AAA. Penalty where search has been initiated.-(1) The 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee should admit the undisclosed income in a statement given under sub-section (4) of section 132, that condition has been fulfilled The assessee has admitted additional income of ₹ 23 crores whose break up has been given in the statement itself. Name of the assessee is available at serial no. 4 and 7. This statement is based on the noting found in the diary. Deponent has duly explained that amounts mentioned against each entity was in coded word viz. instead of ₹ 5 lakhs it should be read as 5 crores two Os are to be added. He further disclosed that this is the net taxable income written in this diary. Thus, he has offered an income of ₹ 6.50 crores. As far as condition no.3 is concerned, this is not in dispute. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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