TaxTMI 
TaxTMI 
2016 (8) TMI 864
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....ound that these assessees have made investments in large scale. The aggregate amount of investments as well as other deposits was arrived at Rs. 7.55 crores and the assessee Shri Samson Perinchery agreed to offer the same as income in his hands as well as in the hands of his family members. He also made a request that the tax paid by them already in their regular returns of income be given credit. Subsequently these assessees filed returns of income for various years u/s 153A of the Act. The AO noticed that the additional income declared by these assessees work out to only Rs. 6.88 crores, resulting in a deficit of Rs. 67.46 lakhs. The assessee submitted that the total investments agreed to be offered by him is fully covered by the income declared in the returns filed u/s 153A of the Act. The assessee further submitted that the income of Rs. 11.55 lakhs declared by him for AY 2002-03 should also be considered as additional disclosure. He further submitted that the assessee had declared higher income to the tune of Rs. 67.26 lakhs in AY 2008-09 in view of the summons received by him u/s 131 of the Act. The assessee pleaded that the income declared in both the above said years would ....
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....otal income returned aggregate to Rs. 7,63,60,546/- (Rs.5,05,12,066 + 2,58,48,480) and therefore full income is disclosed and taxed. No further amounts need to be brought to tax. All assets found in search and seizure operations Rs. 7,55,85,777 Particulars Mr. samson Perinchery Mrs. Piedade Perinchery Total Per appellant for income tax assessment year 2003- 04 to 2008-09 Rs. 4,01,20,796 Rs. 2,14,56,120 Rs. 6,15,76,916 For income tax assessment year 2009- 10 Rs. 1,03,91,270 Rs. 43,92,360 Rs. 1,47,83,630 Total Rs. 7,63,60,546 For income tax assessment year 2002- 03 Rs. 11,55,394 On the basis of the above facts and figures, it is submitted by the appellant that the impugned addition needs to be deleted. 9.4 I have very carefully considered the matter. The contention raised by the appellant before the A.0 was that in the statement recorded under s. 132(4), the appellant had declared that the disclosure as made of Rs. 7,55,85,777/- includes the sums already offered to tax in the returns as fired under s. 139(1). The A.0 had rejected the contention stating that nowhere in the statement recorded under s.132(4), s....
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....in the .interest of fair play and justice, it has to be stated that per 132(4) includes income per 139(1) to the extent taxes already paid. To the said extent the appellant will get relief. To reiterate in answer to question no.20, the appellant had requested that he be given set off the taxes paid by him and his family members in the returns filed before the department for various assessment years against the tax payable determined on the undisclosed income offered by him. Again to reiterate this means that income as per return of income under s. 139(1) on which taxes have been paid by the assessee and his family members + additional income = return of income pursuant to notice under s. 153A. It is ordered accordingly" 5. Having heard rival contentions, we are of the view that there is no infirmity in the decision rendered by Ld CIT(A) on this issue. We notice that the search officials have unearthed various types of investments, cash and deposits. Under the Income tax Act, an assessee is required to disclose the sources thereof. For computing the source, one is required to take into consideration both declared and undisclosed income. Hence, there is merit in the contentions of ....
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.... of the same. Accordingly we restore both these issues to the file of the AO, who may take appropriate decision in accordance with the law after providing adequate opportunity to the assessee. 8. The remaining two appeals relate to the penalty levied u/s 271AAA of the Act. The AO levied penalty on the reasoning that the assessees have not specified the manner in which the undisclosed income was generated and further the assessees have failed to pay the tax on the additional income. It is pertinent to note that the provisions of sec. 271AAA(2) specifies three conditions, which are required to be satisfied in order to escape from penalty under that section. According to AO, the assessees have not satisfied two conditions. In the appellate proceedings, the Ld CIT(A) examined the replies given by the assessee in the sworn statement and noticed that the assessee has stated his sources of income as brokerage and commission income. Accordingly he held that the condition relating the sources of income has been satisfied. With regard to the payment of taxes, the assessee had requested the AO to encash Kisan Vikas Patras and the same was not found to be sufficient by the tax authorities to ....