TaxTMI 
TaxTMI 
2016 (7) TMI 1231
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....rder for the sake of convenience. The grounds raised by the revenue in ITA No. 1026/JP/2015 are as under : 1. Whether on the facts and in the circumstances of the case, the CIT (A) was right in deleting the penalty of Rs. 42,22,600/- levied u/s 271AAA of the Act, whereas the assessee had not fulfilled the requirement as per section 271AAA(2)(ii) of the I.T. Act, 1961. 2. The appellant crave, leave or reserves the right to amend modify, alter add or forego any ground(s) of appeal at any time before or during the hearing of this appeal. 2. Briefly stated the facts are that a search action was conducted on 31.1.2012 in the case of Mangal Group, Jaipur. The assessment under section 143(3) read with section 153B(1)(b) of the I.T. Act, 1961 (h....
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....ty order under section 271AAA of the Act dated 24.09.2014 was passed on the ground that the assessee could not satisfactorily explain and substantiated the income during the assessment proceedings. The assessee aggrieved by this order, preferred an appeal before ld. CIT (A), who after considering the submissions allowed the appeal of the assessee. 3. Now the revenue is in appeal before us. 4. The ld. D/R supported the order of the AO. 4.1. On the contrary, ld. Counsel for the assessee supported the order of ld. CIT (A) and submitted that the AO failed to appreciate the facts and wrongly applied the provisions. He submitted that the ld. CIT (A) has examined the facts and has rightly allowed the appeal. 4.2. We have heard rival contention....
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....t recorded under section 132(4) of the Act, has admitted the undisclosed income, and clearly stated the manner in which the undisclosed income (within the meaning of Explanation (a)(i) of Section 271AAA) was derived and substantiated in statement recorded in course of search. Subsequently, the assessee paid tax, together with interest in respect of the undisclosed income and filed return of income, which stand accepted in assessment u/s 153B(1)(b) r.w.s. 143(3) of the Act. On perusal of the above, it is seen that assessee has offered for tax his undisclosed income (Rs. 4,22,26,000/-) including jewellery as under :- Advance given Rs. 3,80,00,000/- Jewellery Rs. 30,00,000/- On a/c of other discrepancies Rs. 12,26,000/- Rs. 3,22....
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....the Act as - (i) In the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived ; (ii) Substantiates the manner in which the undisclosed income was derived by and later on filed a detailed letter on 02/04/2012 in this regard ; and (iii) Paid the applicable taxes, together with interest, if any, in respect of the undisclosed income. In view of these facts, and circumstances as discussed above, in this case AO has not correctly applied the provisions of section 271AAA of the Act which cannot be sustained, therefore, AO's action for levying penalty of Rs. 42,22,600/- being 10% of undisclosed income of Rs. 42,22,600/- is hereby de....