TaxTMI 
TaxTMI 
2018 (2) TMI 57
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....roposing the following two questions, stated to be substantial questions of law:- "(A) Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal has erred in confirming the order of CIT(A) by ignoring the fact that the assessee has not fulfilled the conditions laid down u/s 271AAA? (B) Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal can delete the penalty when the assessee has not fulfilled the conditions laid down u/s 271AAA as the assessee neither specified the manner of undisclosed income, not substantiated the manner in which the income was derived and not paid the tax while filing the return of income u/s 153A of the Act?" 2. The assess....
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....2.2014, deleted the penalty. The revenue went in appeal to the Tribunal, but did not succeed. 4. Mrs. Kalpana Raval, learned senior standing counsel for the appellant assailed the impugned order by submitting that neither of the three conditions required to avail of immunity from penalty under section 271AAA of the Act, as laid down under sub-section (2) of the said section, have been satisfied in the present case. Reiterating the grounds set out in the memorandum of appeal, it was submitted that the assessee has failed to specify (i) the manner in which the income was derived, (ii) to substantiate the manner in which the undisclosed income was derived, and (iii) to pay the tax together with interest on such undisclosed income. It was su....
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....ssee firm. In the statement it has been clearly explained that the details mentioned in the diary represented net taxable income for the projects and during the course of assessment proceedings, the assessee had filed relevant details in this regard. No evidence was found to show that the assessee had earned the undisclosed income from any other source instead of the projects income. The Commissioner (Appeals) on the basis of the aforesaid findings recorded by him found that the first condition as prescribed under clause (i) of sub-section (2) of section 271AAA of the Act was fulfilled in the case of the assessee, as the manner of earning the undisclosed income has clearly been stated by Shri Kotadia, the partner of the assessee firm. As re....
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.... Act for payment of tax on income disclosed and hence, this condition was also satisfied. In the light of the fact that the assessee had satisfied all the three conditions set out in sub-section (2) of section 271AAA of the Act, the Commissioner (Appeals) deleted the penalty. 7. The Tribunal, in the impugned order, has recorded that in this case in the assessment order, the Assessing Officer himself did not dispute that during the course of search, it was admitted by Shri Kotadia that the income was earned by accepting on-money in its building project "Green City". Thus, the manner in which the income was derived has been disclosed. It was also pointed out that the undisclosed income was received by the assessee as on-money and hence, th....
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....been made on 22.3.2013. Admittedly, therefore, the entire amount of tax and interest had been paid, prior to making of the assessment order. This court in Commissioner of Income Tax v. Mahendra C. Shah (supra), has, in the context of Explanation 5 to sub-section (1) of section 271(1) of the Act, held that there is no prescription as to the point of time when the tax has to be paid qua the amount of income declared in the statement made under section 132(4) of the Act. There would be sufficient compliance with the provision if tax is shown to have been paid before the assessment was completed. 10. Explanation 5 to section 271(1) of the Act provides that where in the course of a search initiated under section 132 before the 1st day of June....