TMI Blog2023 (5) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... found during the course of search. Admittedly, once the document which has the characteristics of undisclosed income found and recovered during the course of search and based on such document, the assessee made the declaration and thereafter, filed return of income, then in that eventuality, in our view, the said income would partake the characteristics of undisclosed income . Hence, the action on the part of the Assessing Officer imposing penalty under section 271AAB(1A) and thereafter, confirming by the ld.CIT(A) cannot be faulted with. Accordingly, the appeal of the assessee is dismissed. - ITA.No.521/Hyd/2022 - - - Dated:- 25-4-2023 - Shri Rama Kanta Panda, Accountant Member And Shri Laliet Kumar, Judicial Member For the Assessee : Sri K.C. Devdas. For the Revenue : Sri K.P.R.R. Murthy. ORDER PER LALIET KUMAR, J.M. This appeal is filed by the assessee, feeling aggrieved by the order of Commissioner of Income Tax (Appeals) 11, Hyderabad dt.11.08.2022 invoking proceedings under section 271AAC(1) of the Income Tax Act, 1961 (in short, the Act ). 2. The grounds raised by the assessee read as under : 1. The Ld.CIT(A) erred in confirmin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces unearthed along with statements during the search and seizure operation u/s 132 of the I.T. Act ultimately lead to admission of income by the appellant and it was not even a voluntary disclosure. If not for the search u/s 132, there is no way the appellant would have admitted the undisclosed income. In view of the above discussion, the penalty of Rs.4,24,875/- levied u/s 271AAC(1) of the Act is hereby confirmed and the ground nos.1 and 2 are dismissed accordingly. 5. Feeling aggrieved with the order of ld.CIT(A), assessee is now in appeal before us. 6. This is an appeal filed by the assessee feeling aggrieved by the penalty confirmed by the ld.CIT(A) for an amount of Rs.7,22,610/-. In this regard, our attention was drawn to the assessment order passed by the Assessing Officer wherein the Assessing Officer had made addition of Rs.24,08,700/- to the income of the assessee during the assessment. Para 4 and 5 of the said assessment order reads as under : 4. During the course of search operation, number of loose sheets and diary were found and seized at the residence of Sri P.Venkateswar Reddy. When the assessee was confronted with the contents of some of the loos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m, (a) a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year, if such assessee (i) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived; (ii) substantiates the manner in which the undisclosed income was derived; and (iii) on or before the specified date (A) pays the tax, together with interest, if any, in respect of the undisclosed income; and (B) furnishes the return of income for the specified previous year declaring such undisclosed income therein; (b) a sum computed at the rate of twenty per cent of the undisclosed income of the specified previous year, if such assessee (i) in the course of the search, in a statement under sub-section (4) of section 132, does not admit the undisclosed income; and (ii) on or before the specified date (A) declares such income in the return of income furnished for the specified previous year; and (B) pays the tax, together with interest, if any, in respect of the undisclosed income; (c) a sum [computed at the rate of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar before the date of search; or (ii) in which search was conducted; (c) undisclosed income means (i) any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions found in the course of a search under section 132, which has (A) not been recorded on or before the date of search in the books of account or other documents maintained in the normal course relating to such previous year; or (B) otherwise not been disclosed to the 52[Principal Chief Commissioner or] Chief Commissioner or 52[Principal Commissioner or] Commissioner before the date of search; or (ii) any income of the specified previous year represented, either wholly or partly, by any entry in respect of an expense recorded in the books of account or other documents maintained in the normal course relating to the specified previous year which is found to be false and would not have been found to be so had the search not been conducted.] 9.1. From the reading of definition of undisclosed income referred in clause (c) of the Explana ..... X X X X Extracts X X X X X X X X Extracts X X X X
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