TMI Blog2023 (5) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... during assessment, for the purpose of Section 271AAA of the Act, then no inference can be drawn that assessee failed to specify the manner in which such income has been derived or substantiates the manner in which the undisclosed income was derived, so as to levy the penalty. At the same time, the order in Rajendra Aggarwal [ 2019 (1) TMI 1208 - ITAT DELHI] is also relevant where it is held that the initiation of penalty u/s 271AAA cannot be on the basis of surrendered amount which cannot be termed as undisclosed income for the purpose of Section 271AAA of the Act. Appeal of assessee allowed. - ITA No. 5462/Del/2014 - - - Dated:- 16-5-2023 - SH. SHAMIM YAHYA , ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA , JUDICIAL MEMBER For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce, penalty levied is against the provisions of the law and shall be deleted. 5. That on the facts and the circumstances of the case, the judgment of Hon'ble Supreme Court in the case of Hindustan Steel v. State of Orissa (1972) 83 ITR 26 still hold good and applicable to the appellant s case. Hence the penalty levied is unjustified. 6. The above grounds of appeal are without prejudice to one another. 7. The assesee craves leave to add, amend, alter or forgo any of the grounds at the time of or before the hearing. 3. Heard and perused the record. 4. None has appeared for the assessee while the notices issued have been received back to the report that assessee has left . Similar report was received earlier. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the specified previous year. (2) Nothing contained in sub-section (1) shall apply if the 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) pays the tax, together with interest, if any, in respect of the undisclosed income. (3) No penalty under the provisions of clause (c) of subsection (1) of section 271 shall be imposed upon the assessee in respect of the undisclosed income referred to in subsection (1). (4) The provisions of sections 274 and 275 shall, so far as may be, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dly, the surrendered income 4.27 crores was offered in the return of the relevant year and tax has been paid thereon. Further before Ld. CIT(A) it was established that no statement u/s 132(4) of the Act was recorded and the correspondence between the assessee and the department also had no inquiry about the manner in which the surrendered income has been derived. Hon ble Delhi High Court in case of Bhagirath Aggarwal v. CIT (2013) 351 ITR 143 / 215 Taxman 229/89 DTR 362 (Delhi) (HC) has held that if an assessee voluntarily makes a surrender, the officials of the income tax department are bound to record that statement u/s 132(4) and such a statement, voluntarily made, is relevant and admissible and is liable to be used as evidence . Thus w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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