TaxTMI 
TaxTMI 
2018 (4) TMI 797
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....t on the ground that the authorized Officer did not specifically ask the appellant to specify and substantiate the manner in which the undisclosed income had been derived and for this relied upon the judgment of Allahabad High Court in the case of RadhaKishanGoel, in spite of the fact that Authorized Officer specifically asked the appellant on this issue while recording appellant's statement u/s 132 (4) of the Act on oath and to that extent, facts of the case relied upon by the Ld. CIT(A) are not identical?" 2. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in observing that no question was put to the appellant by the authorized officer explaining the provisions of Section 27....
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....s carried out at Hicons & Pranay Group of cases including the assessee on 24.02.2009. During the course of search and seizure action, the assessee had voluntarily declared the following amounts as his undisclosed income. Sr. No. Description Amount (Rs.) 1. Jewellery 54,85,465 2. Wrist watches 7,37,400 3. Household appliances 3,47,000 4. Foreign travelling 3,53,660 5. Foreign currency 80,000 TOTAL 70,03,525 This income was offered to tax as Income from Other Sources during the A.Y. under consideration. The assessee had filed his return of income for A.Y. under consideration on 31.03.2010 declaring total income at Rs. 90,65,390/-. Assessment order u/s.143(3) of....
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.... 4.3. I have considered the submissions of the appellant and perused the materials available on record including copies of the judicial decisions relied upon by him. A perusal of the provisions of Section 271AAA reveals that these provisions are brought in place of Section 271(l)(c) of the Act. In sub-section (2), it has been provided that penalty u/s.271AAA will not get attracted, if in the statement under Section 132(4), the assessee admits the undisclosed income and specifies the manner in which such income has been derived and also substantiates the manner in which the undisclosed income was derived and pays the tax, together with interest, if any, in respect of the undisclosed income. Let us now examine whether the appellant satisfi....
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....isclosed the amount of Rs. 70,03,525/- during the course of search, paid tax thereon and filed return showing the said income as 'Income from Other Sources' which has been accepted by the A.O. under the head 'Income from Other Sources'. Therefore, under these circumstances, penalty u/s.271AAA is not leviable on this amount. 4.3.2 It also deserves to be noted that an exception is provided in clause (2) of Explanation 5 to Section 271(l)(c) where the deeming provision of Explanation 5 does not apply if during the course of search, the assessee-makes the statement under sub-section (4) of Section 132 that the money, bullion, jewellery etc. found in his possession has been acquired out of his income which has not been d....
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.... apply with equal force in the context of sub-section (2) of Section 271AAA. 4.3.3 The aforesaid view has also found favour with the Hon'ble Gujarat High Court in the case of Mahendra C Shah (supra) wherein it has been held that when the statement u/S. 132(4) is recorded by the authorized officer, it is incumbent upon the authorized officer to explain the provisions of Explanation 5 in its entirety to the assessee concerned and the authorized officer cannot stop short at a particular stage so as to permit the Revenue to take advantage of such a lapse in the statement. It has also been held that even if the statement u/s.!32(4) does not specify the manner in which the income is derived, if the income is declared and tax thereon ....
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.... We find that penalty in this case has been levied under section 271AAA. The assessee has duly made the disclosure in the course of search of for the undisclosed income and showed the same in return of income, paid taxes thereon and the assessing officer has accepted the income returned and the source of income disclosed. The ld. Commissioner of Income Tax (Appeals) has elaborately considered the issue and passed a reasonable order deleting the levy of penalty. In coming to the said conclusion the ld. Commissioner of Income Tax (Appeals) has also placed reliance upon honourable Allahabad High Court and honourable Gujarat High Court decision. The ratio emanating out of those decisions was that if the search party doesn't put question to ....