TaxTMI 
TaxTMI 
2017 (10) TMI 875
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....he case are that the assessee belongs to Jaipuria group of cases which was subjected to search and seizure action under section 132 of the Income Tax Act, 1961 on 27th of March 2012. The statement of the assessee was recorded under section 132 (4) of the Income Tax Act, 1961 and the assessee's son Shri Anurag Jaipuria also offered a total amount of Rs. 5 crores as undisclosed income in the hands of various individuals and entities associated with the Jaipuria group. In the original return of income filed on 31/07/2012, the assessee had offered a total income of Rs. 10,26,175/- to tax. Subsequently, he filed a revised return of income on 07/06/2013 disclosing total income of Rs. 13,26,175/-. During the course of search and post search invest....
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....The Ld. authorised representative submitted that Rs. 4,82,800/- out of Rs. 17,49,800/- found during the course of search was found from the almirah of the assessee's wife Smt. Pushpa Jaipuria which was her pin money, savings, cash presents and gifts received by her on various functions and other occasions. However, in order to buy peace of mind and avoid litigation, the assessee had voluntarily added the amount of Rs. 3 Lacs out of this Rs. 4,82,800/- with the hope and prayer that no penalty shall be levied. It was submitted that the assessing officer had failed to appreciate that there was no undisclosed income of the assessee as per the provisions of section 271AAA of the Income Tax Act, 1961 and, therefore, the imposition of penalty unde....
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.... substantiated and that the Ld. at CIT appeals had also misapplied the provisions of the Act while confirming the penalty. 4. The Ld. departmental representative, on the other hand, placed reliance on the order of the Ld. CIT (Appeals) and vehemently argued that the penalty in this case was rightly upheld and, therefore, the same should not be deleted. 5. We have heard the rival submissions and have also per used the material on record. Before proceeding to examine the rival contentions, it would be worthwhile to reproduce section 271AAA. Section 271AAA reads as under: "The Assessing Officer may, notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search has been initiated unde....
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....only question thereafter remaining is whether the same was substantiated by the assessee or not. The assessee has already explained the source that is savings/pin money of his wife and as far as the substantiation is concerned, it would be relevant to mention here that given the fact that it is a search case, the question of specifying and substantiating the manner in which the undisclosed income has been derived can be somewhat general and omnibus and no precise calculations or computations can be done with reference thereto. The Cuttack Bench of the Income-Tax Appellate Tribunal in the case of Sri Pramod Kumar Jain vs Deputy Commissioner of Bargarh Income Tax, Circle 2(1) and M/s JRC Resources (P) Ltd vs. CIT Sambalpur in ITA Nos. 131, 13....