2013 (4) TMI 820

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....f the Act. 2. The brief facts as culled out from the orders of the revenue are that search action u/s 132 of the Act was carried out in Operation Life Group cases on 21-08-2008. During the course of search at the premises of the assessee cash of Rs. 22,50,000/-, gold ornament and jewellery etc. worth of Rs. 19,31,000/- were found and the assessee disclosed Rs. 45,00,000/- as his undisclosed income for the assessment year under consideration. The assessee also admitted that the disclosure was made to cover discrepancy in cash, jewellery, expenditure incurred for renovation of hospital, investments in unaccounted assets in his name and in the name of his family members. The assessment proceedings were completed on 24-12- 2010 and total inc....

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....essee in the income tax return for assessment year 2009-10. He further submitted that the tax on such disclosure was adjusted from the seized amount of Rs. 34,50,000/-. The learned AR, therefore, submitted that under the provisions of section 271 AAA(2) of the Act the assessee is entitled to immunity from penalty as he has made disclosure of undisclosed income u/s 132 (4) of the Act during the search proceedings and specified the manner in which the income was earned and had also paid the tax with interest on such income. He, therefore, submitted that in view of the aforesaid facts, no penalty can be levied in assessee's case. He further placed reliance in the case of Mahendra C. Shah Vs CIT, [(1994) 51 ITD 251 (Ahd)] and in the case of ....