TaxTMI 
TaxTMI 
2018 (3) TMI 306
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....the Income Tax Act, 1961. 3. Brief facts of the case are that assessee-firm is engaged in the business of development and construction of houses and commercial projects. 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 21.7.2011. During the search, an income of Rs. 3,35,36,465/- earned from sale of land situated at Gatrad village during the previous year remained unclosed, which were not reflected in the books of accounts. Statements of the partners of the assessee firm were recorded under section 132(4) of the Act , in which they admitted undisclosed income and offered for taxation. The assessee furnished this undisclosed income i....
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....l not be penalized for the alleged concealment penalty proceedings u/s 271AAA of the Act for the following reasons: i) The Authorised Officer insisted the assessee to make Disclosure of Income and explained the assessee that the assessee can be relieved from laving of penalty if the Disclosure is made in the statement recorded u/s.132(4).The partners as well as Madhav Group has cooperated to the Department and made huge disclosure of an income of Rs. 40 Crore as instructed by the Authorized Officer. ii) The partners have disclosed the said huge amount to buy peace of mind and avoid litigation and subject to immunity in penalty proceeding as promised by the Authorized Officer while extracting the statement under section 132....
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.... ten percent in respect of undisclosed income. Sub section 2 of section 271AAA stipulates that penalty leviable u/s. 271AAA(1) shall not apply if the assessee, in a statement u/s. 13 2(4) of the Act recorded during the course of search, admits the undisclosed income, specifies the manner in which such income has been derived; also substantiates the manner in which the undisclosed income has derived and pays the tax, together with interest, in respect of the undisclosed income. In this case an income of Rs. 3,35,36,465/- was disclosed by the assessee in the return of income but does not specifies the manner in which such income has been derived and the same was not recorded in the books of account until the search action carried on 21/07/201....
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....in the statement under section 132(4) and declared in the returns filed by group concerns and in individual returns and paid tax along with interest. It was further submitted by the assessee before the ld.CIT(A) that though the assessee has declared undisclosed income of Rs. 40 crores at the time of statement recorded during the course of search, but as per seized material such income was Rs. 32.50 crores only. But in order to buy peace and to avoid litigation, as also to honour the disclosure made at the time of search, the assessee offered Rs. 40 crores for taxation, which was accepted by the AO without any addition. It is therefore contended that the assessee has disclosed complete details, and therefore, it is entitled for immunity avai....
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....rate of 10% of the undisclosed income of the specified 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 recorded under section 132(4) of the Act at the time of search. Thus, so far as first condition 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. 40 crores whose break up has been given in the explan....