2017 (11) TMI 513

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....e AO. The penalty order is illegal, bad in law and without jurisdiction. 2. That the CIT(A) has, in view of the facts and circumstances of the case, erred on facts and in law in upholding the penalty of Rs. 1,83,357/- levied by the AO u/s 271AAA . 3. That the CIT(A) has , in view of the facts and circumstances of the case, erred on facts and in law in observing that the case of the appellant does not fit into the scope of Sec 271 AAA . 4. That the CIT(A) has , in view of the facts and circumstances of the case, grossly erred on facts and in law in observing that the surrender made by the assessee is not in course of the statement recorded u/s 132(4) and hence Sec 271 AAA benefit cannot be granted to the appellant ....

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....the nature of business carried out by him, the basis of computing such income and to identify the parties with whom such business was conducted. 4. A search u/s 132 of the Income Tax Act, 1961 was carried out in Dawat Group of cases including the assessee on 10/02/2009. During the course of assessment u/s 143(3) of the Income Tax Act, 1961, the assessee offered additional income of Rs. 13,02,500/-. The assessment u/s 143(3) was completed vide order dated 31/12/2010 by making addition of Rs. 34,59,250/- as regards additional income offered by the assessee during assessment proceedings. At the time of assessment order the Assessing Officer held that as regards immunity from imposition of penalty u/s 271 AAA is concerned that cannot be gran....

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....A). 8. We have heard both the parties and perused the material available on record. The issue before us is identical in nature to that of brother of the assessee's case wherein the ITAT has allowed the appeal of the assessee therein. The ITAT, New Delhi in ITA No. 6615/Del/2013 Assessment Year 2009-10 dated 16th August, 2017 held as under:- "10. We have heard the rival contentions and perused the facts of the case. The search was initiated on 10.02.2009 on the Dawat group of cases. The search was conducted at various places including the factory premises, registered offices, residences, lockers etc. Different panachnamas were made at different premises on different dates. Admittedly the last panchnamas of the group were made on ....

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....ted in the said letter this surrender is for the whole group and the taxes shall be paid in respective hands/ persons after going through the seized material. It is clear that when this letter was filed the seized material was not with the assessee. The subsequent letters modifying the surrendered amount are based on the income belonging to the assessee on seized material. 13. The Ld. DR has pointed out that the manner of earning of the surrendered income has not been disclosed by the assessee income has not been disclosed by the assessee whereas the assessee by letter dated 21.01.2010 has disclosed the manner of earning the said income by way of trading in commodities and real estate and also stated this fact is substantiated from....