2013 (8) TMI 624

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.... to substantiate the manner in which undisclosed income was derived so as to qualify for non-levy of penalty within the meaning of sub-section(2) of section 271AAA of the I.T. Act, 1961." 2. Briefly stated, the facts of the case are that proceedings u/s. 132 were conducted at the premises of Kanakia Group of cases on 19th July, 2007. During the course of search proceedings, certain incriminating documents were found. After analysis of the same, a sum of Rs.5,50,00,000/- was declared as additional income u/s. 132(4) of IT Act. The break up of the declaration as under: S.No. Head of Declaration Amount (Rs. In lacs) 1. Income u/s.68 500.00 2. 20% disallowance u/s.40A(3) 99.40 3. To cover up any discrepancies....

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....ion 271AAA(2) will apply to assessee for granting immunity. 3.1 Ld. CIT(A) after considering the submission deleted the penalty by stating as under :- "I have carefully considered the submissions made by the appellant in respect of the penalty levied by the ld.AO. It is seen that the ld.AO has written two sentences at para- 8 to conclude that the appellant has not been able to substantiate the source of acquisition of the movable assets. The fact of the matter is that the requirement on the part of an assessee to substantiate the source of income cannot be taken to mean that all evidences in the respect has to be produced. The very fact that the disclosure is made in respect of undisclosed income, all that can be required of an assess....

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....the assessee concerned and the authorized officer cannot stop short at a particular stage so as to permit the Revenue to take advantage of such a lapse in the statement. The reason is not far to seek. In the first instance, the statement is being recorded in the question and answer form and there would be no occasion for an assessee to state and make averments in the exact format stipulated by the provisions considering the setting in which such statement is being recorded. Secondly, considering the social environment it is not possible to expect from an assessee, whether literate or illiterate, to be specific and to the point regarding the conditions stipulated in the second exception while making statement under section 132(4). Even if th....