TMI Blog2012 (7) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... arch action u/s.132 was conducted in the case of the assessee as well as in other cases belonging to the same group. During the course of the search, unaccounted transactions of the assessee were unearthed revealing undisclosed income of the assessee. In the statement recorded during the course of search u/s.132(4), the assessee offered his undisclosed income as a result of search aggregating to ₹ 1,59,14,761/-. The said amount offered was comprising of a sum of ₹ 70 lakhs advanced as loans to various persons onside the books of account, unaccounted cash of ₹ 40,31,000/- found during the course of search, unaccounted jewellery of ₹ 22,26,317/- found during the course of search and unexplained investment of ₹ 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come at ₹ 1,59,14,760/-. 4. The penalty imposed by the AO u/s.271(1)(c) was challenged by the assessee in an appeal filed before the Ld. CIT (A) who allowed the claim of the assessee for immunity as per the relevant provisions contained in Explanation 5 to sec.271(1)(c) for the following reasons given in Para no.8 of his impugned order: 8. After examining the penalty order, facts of the matter and the legal position, I find that the action of the A.O. in levying penalty cannot be upheld. The appellant has disclosed income in the course of search action vide statement u/s 132(4) recorded on 06.10.06 in respect of asst. year 2007-08 for which return was not due on the date of search. Subsequently, such declared inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT (A) the revenue has preferred this appeal before the Tribunal. 6. At the time of hearing before us, the Ld. DR has relied on the order of the AO imposing the penalty u/s.271(1)(c) whereas the Ld. Counsel for the assessee has relied on the impugned order of the Ld. CIT (A) in support of the assessee s case stating that the same is well reasoned and well discussed. 7. We have considered the rival submissions and also perused the relevant material on record. It is observed that in his statement recorded during the course of search u/s.132(4), the undisclosed income found as a result of search was surrendered by the assessee and after payment of tax in respect of such income, the same was duly declared by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is incumbent upon the authorized officer to explain the provisions of Expl. 5 in entirety to the assessee concerned and the authorized officer cannot stop short at a particular stage so as to permit the Revenue to take advantage of such a lapse in the statement. The reason is not far to seek. In first instance, the statement is being recorded in the question and answer form and there would be no occasion for an assessee to state and make averments in the exact format stipulated by the provisions considering the setting in which such statement is being recorded. Secondly, considering the social environment it is not possible to expect from an assessee, whether literate or illiterate, to be specific and to the point regarding the conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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