2017 (4) TMI 1291

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cts of the case are that a search under section 132 of the Income Tax Act was carried out at the business premises of the assessee as well as residential premises of the partners on 19.1.2011. During the search, one small pocket diary i.e. "KP Diary" was found and recovered from residence of Shri Manish Kantilal Shah. This diary was seized as Annexure BF & S. Page No.1 to 7 of this diary contained certain details. When main partner of the infrastructure group was confronted with diary, then he admitted undisclosed income of Rs. 23.15 crores which has been written in this diary in coded-word. For the present assessee this income was admitted at Rs. 6.65 crores. Though originally the assessee has disclosed total income at Rs. 6,65,11,760/- in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he unaccounted income of Rs. 23.15 Crores for taxation for the A.Y 2011-12 in hands of various firms/concerns. Details of offered incomes are as under:- Sr. No Page No. Name of the concern Name of the project Total amount [coded] Total amount [actual] 1 1 Anant Enterprise Western Shetrunjay 325000 3,25,00,000 2 2 Avani Corporation Western Somchintamani 785000 7,85,00,000 3 3 Amar Developer Western Shikharji 275000 2,75,00,000 4 4 Ambica Developer Western Business Park & Wester Residency 165000 1,65,00,000 5 5 Aditya Developers Virbhadra Avenue 151000 1,51,00,000 6 6 Ambica Enterprises Western Height 114000 1,14,00,00....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... to substantiate the manner in which this income was earned. It was also contended that the ld.CIT(A) has relied upon the judgment of the Hon'ble Gujarat High Court in the case of CIT Vs. Mahendra C. Shah, 299 ITR 305 (Guj), but this judgment was in connection with the levy of penalty under section 271(1)(c) with aid of Explanation 5 to section 271(1)(c). 6. On the other hand, the ld.counsel for the assessee took us through reply to question no.15 of the statement recorded under section 132(4) of the Act. Such reply is available at page no.11 of the paper book. On the strength of this reply, it was contended that the assessee has disclosed complete details, and therefore, it is entitled for immunity available under section 271AAA (2) of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed previous year. Sub-section (2) provides conditions on whose fulfillment the assessee could be absolved from the levy of penalty. A perusal of sub-section (2) would indicate that it postulates three conditions for an assessee on whose fulfillment he will be absolved from levy of penalty. In the present case, we have perused the statement of Shri Manish K. Shah recorded under section 132(4) of the Act at the time of search. Thus, so far as first conditions is concerned, the assessee should admit the undisclosed income in a statement given under sub-section (4) of section 132, that condition has been fulfilled The assessee has admitted additional income of Rs. 23 crores whose break up has been given in the statement itself. Name of the asse....