TMI Blog2018 (5) TMI 1153X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the course of search or during the assessment proceedings. In the absence of any such direction from the AO, it could not be expected from the assessee to explain the manner in which such income was earned. Therefore, to my mind the assessee has fulfilled all conditions contemplated in sub-section (2) of section 271AAA of the Act and no penalty deserves to be imposed upon the assessee. - Decided in favour of assessee. - ITA No. 1095/Ahd/2016 - - - Dated:- 17-5-2018 - Shri Rajpal Yadav, Judicial Member Revenue by : Shri James Kurian, Sr.DR Assessee by : Shri S.N. Soparkar, AR ORDER Revenue is in appeal before the Tribunal against order of the ld.CIT(A)-12, Ahmedabad dated 2.12.2015 passed for the Asstt.Year 2012-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in his return of income has offered additional income of ₹ 3,44,50,000/- which is as per the disclosure of additional income made during the course of search proceedings. This additional income has been offered due to search action and the findings thereof, thus the amount of ₹ 3,44,50,000/- is undisclosed income of the assessee for the specified year as per section 271AAA of the Act. Therefore, penalty proceedings u/s 271AAA are separately initiated for this default. 4. Considering the submissions and explanation submitted by the assessee and the discussion with the A.R., the total income is determined as under: 5. Total income as per return of income filed u/s 139(1) : ₹ 2,89,58,320/- 6. Assessed u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner in which such income was derived and also substantiate such manner. In other words, assessee was to provide details of persons from whom money was received in the land dealing as well as commission income so that department could conduct an inquiry in their hands. Since he failed to disclose such manner, therefore, he deserves to be visited with penalty. 6. I have duly considered rival submissions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or to substantiate such manner showing the earning of undisclosed income admitted during the course of search. It is also pertinent to observe that during the course of search statement of assessee was not recorded. It was of Anil Bholabhai Patel and no such specific question was asked. The ld.CIT(A) has reproduced statement of Shri Anil Bholabhai in the impugned order and observed that under identical circumstances penalties imposed on other group persons have been deleted. Thus, I am of the view that department failed to demonstrate that the assessee was confronted with conditions enumerated in section 271AAA either during the course of search or during the assessment proceedings. In the absence of any such direction from the AO, it coul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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