TaxTMI 
TaxTMI 
2014 (1) TMI 748
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....or both the assessees. It was further submitted that the submissions made in one case would be equally applicable to the other case. 3. The facts as culled out from the orders of the lower authorities are as under. ITA No. 2718/Ahd/ 2012:- ( Rivaa Exports) 4. In this case during the course of search action at the premises of Assessee unrecorded cash of Rs. 6.5 lacs was found which was admitted by the Assessee to be unrecorded sale for F.Y. 08-09. Assessee had disclosed Rs. 75 lacs on account of various discrepancies found (it included Rs. 6.5 lacs unrecorded sale). Assessee thereafter filed return of income on 26.9.2009 showing total income of Rs. 2,27,56,330/-. Assessment was framed u/s 143(3) vide order dated 31.12.2010 and the return ....
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....the statement u/s 132(4) and assessee should specify the manner in which it has been derived. Shri Harikishan Virmani, in the statement recorded on 28-01-2009, in the course of search stated in reply to questions nos. 6 to 14 that he was disclosing Rs. 2.50 crores in financial year 2008-09 representing undisclosed income earned from unaccounted trading on behalf of himself and his group. He further submitted in reply to Q.No.13 that break up will be given after getting the copies of his statement, copies of the seized material and copies of statement of his staff. Shri Hrikishan virmani filed bifurcation of disclosure of undisclosed income admitted in the statement recorded on 28.01.2009 for Rs.2.50 crores. As per this bifurcation, income o....
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....y the authorized Officer, it is incumbent upon the authorized officer to explain the provision of explanation 5 in entirely to 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 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 ....
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.... case in the statement the manner in which income has been derived has not been stated but has been stated subsequently, it amounts to compliance with Explanation 5(2). If there is nothing to the contrary in the statement recorded under section 132(4) of the Act in the absence of any specific statement about the manner in which such income has been derived, it can be inferred that such undisclosed income was derived from the business which he was carrying on. The object of the provision is achieved by making the statement admitting the non-disdosure of money, bullion, jewellery, etc. thus, much importance should not be attached to the statement about the manner in which such income has been derived. It can be inferred on the facts and circu....
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....ondition regarding the payment of tax along with interest on undisclosed income admitted in the course of search. It is undisputed fact that the tax and interest had been paid by the assessee. The Assessing Officer himself stated the same in the penalty order. On the basis of principles laid down by the Honourable jurisdictional High Court and by the Allahabad High Court in the above cited cases and the decision of ITAT 'D' Bench, Ahmedabad in the case of Rajendra Prasad Dokania, the assessee can be said to have substantially discharged the onus of explaining and substantiating the manner of earning undisclosed income because the Assessing Officer made assessment of disclosure made by assessee on the ba....
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.... have heard the rival submissions and perused the material on record. It is an undisputed fact that in case of Assessee disclosure of Rs. 75 lacs was made and the same was also offered for tax and tax was also paid. It is also a fact that in the statement recorded u/s. 132(4) Assessee had submitted that the unaccounted income was earned from undisclosed income. CIT(A) by well reasoned order while deleting the penalty has noted that the bifurcation of disclosure of undisclosed income was admitted by the Assessee and also filed. He has also noted that the authorised officer did not ask any specific question on substantiating the manner in which income was derived. He has further noted that in the statement recorded u/s. 132(4) on 28.01.2009, ....