TMI Blog2020 (9) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... concur with the findings of the ld. CIT(A) in the case of the assessee. Thus the appeal of the Revenue is dismissed. - ITA No.880/JP/2019 - - - Dated:- 11-9-2020 - Shri Ramesh C Sharma, AM And Shri Sandeep Gosain, JM For the Assessee : Shri S.L. Poddar, Advocate For the Revenue : Smt. Runi Paul , Addl. CIT DR ORDER PER SANDEEP GOSAIN, J.M. The present appeal has been filed by the Department against the order of ld.CIT (A)-4, Jaipur dated 25.04.2019 for the Assessment Year 2014-15 passed u/s 271AAB of the Income Tax Act, 1961 (in short the Act ) raising following grounds of appeal. 1. Whether on the facts and I the circumstances of the case and in law the ld. CIT(A) was right in deleting the penalty of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctly covered by decision of Hon'ble ITAT Jaipur in the case of Raja Ram Maheshwari Vs. DCIT (ITA 992/JP/2017 dated 10-01-2019). The Ld. A/R also highlighted other judgment in his favour namely: a. Ravi Mathur 969/JP/2017 b. S C Mit tal 931/1P/2017 c. Anuj Mathur 971/JP/2017 5.2 The appellant was subjected to search and seizure on 04-09- 2013. During the course of search certain loose paper were found and seized marked Annexure AS/Exhibit-1, which contained list of advances given for land purchased totaling to ₹ 3.3 Crores. These 3 pages are filed before me in paper book pager 31 to 33. The appellant owned these advance given as his undisclosed income u/s 132(4) of the Act and paid taxed there in the returned filed on 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hands of the assessee. Therefore, once there is an inflow of funds by way of income, there could be subsequent outflow by way of investment. Investment and income thus connotes different meaning and connotation and thus cannot be used interchangeably. In the definition of undisclosed income, where it talks about income by way of any entry in the books of account or other documents or transactions found in the course of a search under section 132 , what perhaps has been envisaged by the legislature is an inflow of funds in the hands of the assessee which has been found recorded by way of any entry in the books of accounts or other documents, and which has not been recorded before the date of search in the books of accounts or other doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and in the light of satisfaction of conditions specified therein. In light of the same, the undisclosed investment by way of advance for purchase of land can be subject matter of addition in the quantum proceedings, however the same cannot be said to qualify as an undisclosed income in the context of section 271AAB read with the explanation thereto and penalty so levied deserves to be set-aside. Careful perusal of the order shows that appellant case is covered by the said decision of Hon'ble ITAT Jaipur order as the impugned seized document contains list of advances made by the appellant. Such advances were owned up as undisclosed income by the appellant. 5.4 Further during the course of appellate proceedings the Ld. A/R was sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and circumstances of the case and in law, the Ld. ITAT has erred in not appreciating the facts that the specific charge 'have in a statement under sub section 4 of section 132 during the course of search and seizure operation admitted undisclosed income' was mentioned in the notice? (C) Whether the benefit of Section 292BB was correctly denied to the AO/appellant by the ITAT? 6.2 Clearly the issue of what constitute the 'undisclosed income within the definition provided in the section u/s 271AAB was never a subject matter before the Hon'ble High Court of Allahabad. Even otherwise this aspect is discussed elaborately in the order of Niraj Mathur delivered by Hon'ble ITAT Jaipur. Thus, following the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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