TMI Blog2018 (9) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act will not be applicable in the present case. - Decided against revenue. - ITA No. 1142/Del/2015 And C.O No. 270/Del/2015 - - - Dated:- 13-9-2018 - SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER For The Appellant : Sh. S. S. Rana, CIT DR For The Respondent : Sh. Ashwani Kumar, CA ORDER PER SUCHITRA KAMBLE, JM This appeal is filed by the Revenue against the order dated 31/12/2014 passed by CIT(A)-III, Gurgaon for Assessment Year 2009-10 and the Cross Objection is filed by the assessee. 2. The grounds of appeal are as under:- ITA No. 1142/Del/2015 ( i) Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the total pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er initiated penalty proceedings u/s 271AAA. Rejecting the explanation of the assessee, the Assessing Officer levied penalty of ₹ 70,00,000/- 4. Being aggrieved by the penalty order, the assessee filed appeal before the CIT (A). The CIT (A) allowed the appeal of the assessee. 5. The Ld. DR submitted that the assessee has not substantially brought any material or explained the manner regarding the undisclosed income. The Ld. DR submitted that as per requirement of Section 271AAA of the Act, the assesse has to explain the substantial manner of the income before the Assessing Officer. The Assessee failed to do so and, therefore, the Assessing Officer rightly levied penalty in respect of failure to substantiate the manner in which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se. The Tribunal in the case of Director of the assessee Company deleted the penalty levied u/s 271AAA for the same Assessment Year on which the surrender took place. The Tribunal held as under:- 19. Thus, evidently, penalty u/s 271AAA is not leviable if an assessee, in his statement recorded during the search u/s 132 of the Act, admits the undisclosed income, specifies and substantiates the manner in which it has been derived and pays the taxes due thereon, together with interest. Here, undisputedly, the assessee has paid due tax on the admitted undisclosed income. The question of specifying the manner in which the undisclosed ITA Nos.1835 1836/Del/2013 Stay No.433/Del/2013 income was derived, stood duly answered by the assessee b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulochanadevi A. Agarwal' (supra) (CLPB 23- 29). 22. For the above discussion, we hold that the assessee has substantiated the manner in which the undisclosed income was derived and that being so, the condition laid down by Section 271AAA (2) (ii) has been duly met. We hold that therefore, the ld. CIT (A) erred in deciding this issue against the assessee. 23. Consequently, the grievance of the assessee is found to be justified and is accepted as such. 24. As stated at the beginning of this order, the facts in ITA No.1836/Del/2013 are, mutatis mutandis, exactly similar to those in ITA No.1835/Del/2013. Hence, our discussion on the matter shall apply equally for ITA No.1836/Del/2013 also. 25. In the result, both the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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