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2020 (3) TMI 334

..... ficer has considered the amount of ₹ 2.44 crores, over and above the surrendered amount, and has computed the penalty accordingly. Since the issue relating to the sum of ₹ 2.44 crores is now well settled in favour of the assessee, in our considered opinion, the AO should now consider the amount of ₹ 4 crores which was offered u/s 132(4) of the Act and honoured in the return of income for levy of penalty u/s 271AAA. We, accordingly, restore this issue to the file of the Assessing Officer. AO is directed to consider the levy of penalty u/s 271AAA on the sum of ₹ 4 crores as per the provisions of law keeping in mind that the said sum was offered for taxation in the statement made u/s 132(4) of the Act and honoured in th .....

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..... nter alia, surrendered a sum of ₹ 2.60 crores as additional income for Assessment Year 2011-12 in respect of unaccounted sales transaction found recorded in Annexure A-1 and Annexure A-2. However, during the course of assessment proceedings, the assessee stated that the statement made u/s 132(4) of the Act was retracted on 31.12.2010 as per communication sent by him to the Director of Income tax [Inv] as the said statement was made by him under a mistaken belief of fact/law. The relevant portion of the assessee s statement read as under: As regards the amount of ₹ 2.44 crores which are the outstanding balances as on 1.1.1998 noted in the seized 1998 diary in Annexure A- 3 found during the course of search, the assessee has expla .....

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..... lacs, the assessee has already included an amount of ₹ 2.60 crores in its return of income and has offered the same for taxation inspite of the fact that the profit/income component in the above amount of ₹ 2.60 crores is only ₹ 10.40 lacs arising out of such business transactions, then the benefit of telescoping should be allowed to the assessee in respect of excess amount so offered for taxation. In the instant case even if the amount of₹ 2.44 crores which is the outstanding balance as on 1.1.1998 is c onsidg&edfnass ess ment year 2011-12 then also the excess amount of in cq/fielqfffi^^fiy the assessee for taxation out of ₹ 2.60 crores duly covers the amount of ₹ 2.44 crores outstanding as on 1.1.1 .....

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..... confirmed by the ld. CIT(A). 8. Having heard the rival submissions, we have carefully perused the orders of the authorities below. In so far as the addition of ₹ 2.44 crores is concerned, which was over and above the declared sum of ₹ 4 crores, the Tribunal in ITA No. 4392/DEL/2014, vide order dated 28.06.2018, has held that the sum of ₹ 2.44 crores is part of the sum of ₹ 4 crores and, therefore, no separate addition should be made in respect of this amount. The relevant findings of the Tribunal read as under: 18. Now coming to Ground No.4, it is not in dispute that the declaration of ₹ 2.6 crore by the assessee u/s 132(4) of the Act was on account of sales outside the books. Both the authorities below did not .....

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..... 377; 2.44 crores into ₹ 2.60 crores in which event nothing over and above the declaration of ₹ 4 crore is taxable. We accordingly answer Ground No.4 in favour of the assessee. 9. In light of the afore stated findings of the Tribunal, the entire quarrel boils down to the declared sum of ₹ 4 crores which was offered by the assessee in his return of income. A careful perusal of the order u/s 271AAA of the Act would show that the Assessing Officer has considered the amount of ₹ 2.44 crores, over and above the surrendered amount, and has computed the penalty accordingly. Since the issue relating to the sum of ₹ 2.44 crores is now well settled in favour of the assessee, in our considered opinion, the Assessing Office .....

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