TaxTMI 
TaxTMI 
2014 (3) TMI 1026
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....s raised the following ground: "1 The Ld. CIT(A) has erred both in law and on facts while deleting the penalty of Rs. 17,67,482/-, Rs. 22,54,950/- and Rs. 45,00,000/- without appreciating the facts that the assessee has failed 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 Sec 271AAA of the Act. 3 Both the parties clearly submitted that the facts and contentions involved in these appeals are identical to the facts and contents of the issues involved in ITAs No. 1003 & 1004/2013 in case of Munish Kumar Goyal and Harish Kumar Singla, therefore same decision may be followed in these cases. 4 After considering the rival submissio....
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....sed to the Chief 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;......." The perusal of above detailed definition shows that it is exhaustive definition and there is clear identification of the income represented "either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of accounts or other documents of transac....
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....y any assets/documents found during the course of search operation and has also observed that the same was part of the undisclosed income just because this disclosure had come during the course of search and was therefore as a result of the search. There is a clear acceptance of the fact that the said disclosure is not with reference to any assets/documents found during the course of search. It is only because the said disclosure happened during the search that the same has been clubbed in the definition of undisclosed income requiring the assessee to fulfill the condition as specified in sub section (2) of 271AAA. I am of the clear view that income to the extent of Rs. 3,80,12,500/- does not come under the definition of undisclosed income ....
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....come, the penalty under section 271AAA would not be leviable because of fulfillment of requirement of sub section (2) of section 271AAA." 9 We further find that Section 271AAA reads as under: "271AAA. (1) The Assessing Officer may, notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search has been initiated under section 132 on or after the 1st day of June, 2007 43[but before the 1st day of July, 2012], the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year. (2) Nothing contained in sub-section (1) shall apply if the assessee,- (i) i....
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....n 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; (b) Not relevant-----------------" 10 Plain reading of sub-section would show that if the assessee during the course of search in a statement admits to some undisclosed income and pay taxes on the same then penalty cannot be levied in terms of sub-sec (1) of this Section. In the case before us, the amount of Rs. 4 crores which was surrendered during search, has been declared by the assessee in the return and taxes have been paid accordingly. Therefore the assessee is normally entitled for the....