2017 (4) TMI 250

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....271AAA of the Income Tax Act, 1961. 3. Brief facts of the case are that a search and operation was carried out at the premises of the assessee on 24.9.2008. She has filed her return of income on 29.9.2009 declaring total income at Rs. 121,78,685/-. The statement of her husband Shri Shailesh G. Patel was recorded under section 132 (4) of the Act. In his statement, he has declared undisclosed income of Rs. 2.00 crores and offered tax on that. While allocating this amount of Rs. 2.00 cores, he offered a sum of Rs. 1,04,75,000/- in the hands of the assessee. The ld.AO has passed assessment order under section 143(3) on 30.12.2010 and determined taxable income of the assessee at Rs. 122,59,795/- as against disclosed income of Rs. 121,78,65/-.....

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....ndition of Section 271 AAA[2] is fulfilled. It has also been submitted by the AR that in the statement u/s. 132[4] on page No. 8, the appellant clearly stated that amount of Rs. 98,74,830/-represented her profit earned during the year under consideration on sale of plot of land, which was not disclosed earlier and on page No. 9 of the said statement, it was stated by her that Rs. 6,00,110/- represented the profit earned on sale of another plot of land sold to Shri Ashokbhai Rasikbhai Patel and Shri Nikulbhai Dilipbhai Patel. This income was also unaccounted and undisclosed but the appellant admitted that it pertained to A.Y. 2008-09. It has also been admitted by the appellant in her statement that Rs. 98,74,830/- was received by cheque whic....

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....he tax, together with interest, if any, in respect of the undisclosed income. It is observed that in the captioned case, there was a search u/s. 132 of the I. T. Act and the statement was recorded u/s. 132[4] wherein the appellant declared unaccounted income which was undisclosed earlier and for the year under consideration, the appellant has declared Rs. 98,74,830/- which was derived by her as profit on sale of land. It was stated her that she had purchased a plot of land on 29-1-2007 from Dr. Udaykant G. Mistry and some construction was also done thereon and total cost incurred by her was Rs. 40,80,631/- which included expenses incurred for stamp and registration. The details of the said transaction were found to be entered on page No.....

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.... C Shah [2008] 299 ITR 305 Guj] ii) It is not expected from a person to make statement suo-moto about the manner of earning the income unless he is specifically asked by the authorized officer but even if it is stated subsequently, that will amount to the compliance of explanation 5[2] of Sec. 271(1)(c). In absence of any specific statement about manner of earning income, it can be inferred that undisclosed income was derived from business which he was carrying on or from other sources. The objection of provision is achieved by making statement admitting non disclosure of money, bullion, jewelry, etc. [RadhakishanGoyal278ITR454-Alld.H.C.] It is seen that the judgements of Mahendra C Shah and Radhakishan Goyal both were delivered in....

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....ion of provision is achieved by making statement admitting non disclosure of money, bullion, jewelry, etc. [RadhakishanGoyal 278ITR454-Alld.H.C.] It is seen that the judgements of Mahendra C Shah and Radhakishan Goyal both were delivered in the context of Sec. 271(1)(c) explanation 5[2] but the provisions are akin to Sec. 271AAA[2]. There are various other court decisions also which support this view that if assessee declares voluntarily, additional income during the statement u/s. 132[4] and states the manner of earning said income supported by identified assets and taxes along with interest paid thereon, the conditions of Sec. 271AAA[2] will be treated as fulfilled and penalty u/s. 271AAA shall not be leviable for e.g....

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....nd gone through the record carefully. Statement of Shri Shailesh G. Patel recorded during the course of search is available on page no.17 of the paper book. Vide question no.13 he was confronted with a page no.33 of annexure BS-5 wherein an entry of Rs. 98,74,830/- was recorded. It was a deposit through cheque on 19.8.2008. The cheque number has also been confronted to the assessee. In response to this question, Shri Shailesh Patel has given a complete list of investment and how he has earned that money. He has made disclosure of Rs. 2.00 crores. He has specifically disclosed that on-money of Rs. 1,04,75,000/- was received for sale of a plot whose sale deed was registered showing a consideration of Rs. 50,34,000/-. On-money received was off....