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TMI Blog2020 (7) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... as source of Rs. 80,000/- is well explained during assessment proceedings, penalty u/s 271AAB on it amounting to Rs. 24,000/- also being not leviable needs deletion." 2. Regarding Ground No. 1, the ld AR drawn our reference to the findings of the Assessing in the assessment order passed u/s 143(3) r/w 153A dated 29.01.2016 which read as under:- "7. Undisclosed income admitted and declared in the return of income During the course of post search proceedings, the assessee had admitted an income of Rs. 6,00,000/- on A/c of undisclosed investment in Land as per documents seized from residence of Shri B.D. Mundra at 524A, Talwandi, Kota and inventorised as Exhibit-13, Page 45-49 of Annexure-AS, which is a copy of registered sale/purchase de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 80,000/- brought to tax u/s 69B of the Act and as far as the income of Rs. 5.20 lakh offered by the assessee in the revised return e- filed on 09.11.2013, the penalty proceedings were not initiated. It was accordingly submitted that the penalty so levied by the AO u/s 271AAB therefore deserves to be deleted. 4. Regarding the penalty levied by the AO on addition of Rs. 80,000/- made u/s 69B of the Act, our reference was drawn to the working of investment in the Industrial Land as per revised return of income as under: Cash available as on 31.03.2013 Rs. 82,561 Add: Undisclosed income Rs. 5,20,000 Rs. 6,02,561 Less : Investment in Industrial Land Rs. 6,00,000 Revised Cash in hand on 31.03.2013 Rs. 2,561 5. It was sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has originally admitted undisclosed income of Rs. 6,00,000/-, only additional of Rs. 5.20 lakh was offered in the revised return, balance addition of Rs. 80,000/- was made during the course of assessment proceedings. It was accordingly submitted that the penalty proceedings u/s 271AAB were initiated for the whole of the undisclosed income of Rs. 6,00,000/- and it is incorrect on the part of the ld. AR to state that the penalty has been initiated only in relation to the additional income of Rs. 80,000/- brought to tax by the Assessing Officer. Further, our reference was drawn to the findings of the ld CIT(A) which read as under:- "6.3 The income of Rs. 6,00,000/- being unexplained investment in land, in respect of which penalty has been le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undisclosed income therein. 6.6 The assessee has laid much stress on the fact that out of the income of Rs. 6,00,000/- in respect of which penalty u/s 271AAB has been levied, income of Rs. 5,20,000/- was offered to tax in the return of income filed before issue of notice u/s 153A. There is no dispute about this fact, and therefore in respect of the income of Rs. 5,20,000/-, which was declared in the ROI filed before issue of notice u/s 153A, the assessee satisfies the condition "(iii)" above. However, at no stage, including in the present appellate proceedings, has the assessee specified the manner in which the income of Rs. 5,20,000/-was derived, much less substantiate such manner. Therefore conditions (ii) and (ii) above, also required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted by the assessee pursuant to search conducted on 13.08.2013. Given that the assessee had only disclosed a sum of Rs. 5.2 lacs in the revised return filed on 9.11.2013, subsequent to date of search and thereafter, in the return filed on 16.02.2015 in response to notice u/s 153A, the Assessing officer has brought the balance amount of Rs. 80,000/- to tax during the course of assessment proceedings. However, as far as initiation of penalty proceedings u/s 271AAB is concerned, the same has been initiated on the whole of the sum of Rs. 6 lacs admitted by the assessee pursuant to search. 8. Regarding the second contention of the ld AR that the assessee had cash in hand of Rs. 80,000/- as on 31.03.2013 and the same has been utilized in making ..... X X X X Extracts X X X X X X X X Extracts X X X X
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