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TMI Blog2019 (3) TMI 1462X X X X Extracts X X X X X X X X Extracts X X X X ..... .03.2012. Assessment order u/s 153A read with section 143(3) was passed on 26.03.2014. The AO issued notices u/s 271AAA of the Act and levied penalty of Rs. 36,460/- being 10% of the undisclosed income of Rs. 3,64,602/- for assessment year under appeal. The amount of Rs. 3,64,602/- is the amount of additional income offered to tax by the assessee as his undisclosed income for assessment year under appeal. 3. The assessee challenged the levy of penalty before Ld.CIT(A). The submissions of the assessee are reproduced in the appellate order. The assessee briefly explained that the AO has accepted the returned income and did not make any addition in the assessment proceedings. The assessee was eligible to get immunity from penalty u/s 271AAA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to the statement of the assessee recorded during the course of search in which as regards cash of Rs. 2,57,000/- assessee explained that the same belongs to him and his wife and source of cash is withdrawn as salary from the company and past cash pertaining to his wife. As regards the other loose paper, assessee explains that the same pertained to our business concerns. The Ld. CIT(A), however, noted that there is no admission of undisclosed income arising from the seized paper, therefore, penalty is leviable against the assessee. He has confirmed the penalty and dismissed the appeal of assessee. 5. Ld. Counsel for assessee submitted that on the identical facts, in the case of other group person Shri Mahavir Prasad Jaipuria, ITAT on si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endering the same in his own hands in the computation of income. Therefore, as per the specific provisions of section 271AAA, this amount does not specifically fall under the definition of undisclosed income found during the course of search. It is also noteworthy that the assessing officer accepted this surrender without any questions asked. Even if for the sake of argument, the same is accepted as to be cash found during the course of search, it is undisputed that the assessee has paid tax due thereon. The only question thereafter remaining is whether the same was substantiated by the assessee or not. The assessee has already explained the source that is savings/pin money of his wife and as far as the substantiation is concerned, it would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fulfilled although all the conditions have been agreed to of having fulfilled by the Assessing Officer insofar as the tax and interest has been recovered. Penalty has been levied after the tax has been recovered therefore answers the queries raised by the Learned DR for that the said provisions become redundant was not the intention of the legislation. The manner, during the search operation, is noted by the search party which the Assessing Officer has acceded to. Therefore, following the decisions as relied upon by the Learned counsel for assessee, wherein the Tribunal was pleased to consider cancelling the penalty so levied are also applicable to the assesse's case before us insofar as there is no prescribed method to indicate the manne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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