2018 (5) TMI 1153

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....Tax Act was conducted in the Anil Bholabhai Patel group of cases including the case of the assessee. It was conducted on 9.8.2011. Therefore, a statement of Shri Anil Bholabhai Patel was recorded under section 132(4) of the Act and he admitted undisclosed income of Rs. 35 crores for the whole group. He allocated the income accordingly amongst different persons of the family members and business concerns controlled by him. They agreed to his statement. According to his statement a share of the assessee was Rs. 3,44,50,000/-. The assessee has filed his return of income for the Asstt.Year 2012-13 on 30.3.2013 showing total income at Rs. 2,89,58,320/- and agriculture income of Rs. 1,50,000/- for the Asstt.Year 2012-13. The ld.AO has passed asse....

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.....Act. 7. This order is passed after approval of the Addl. CIT, Central Range, Baroda vide his approval No. 240/31 dated 21/03/2014." 4. The ld.AO has initiated penalty proceedings under section 271AAA of the Act and observed that during the course of search, as per the admission of Shri Anil Bholabhai Patel, assessee had disclosed an amount of Rs. 3,44,50,000/- on account of unaccounted receipts derived from land trading and commission income. The AO was of the opinion that though he assessee has fulfilled conditions enumerated under section 271AAA of the Act, but failed to substantiate the manner in which such income was derived. Accordingly, he imposed penalty at the rate of 10% of the undisclosed income. On appeal, the ld.CIT....

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....e specified previous year. (2) Nothing contained in sub-section (1) shall apply if the assessee,- (i ) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived; (ii ) substantiates the manner in which the undisclosed income was derived; and (iii ) pays the tax, together with interest, if any, in respect of the undisclosed income. (3) No penalty under the provisions of clause (c) of sub-section (1) of section 271 shall be imposed upon the assessee in respect of the undisclosed income referred to in sub-section (1)." 7. A bare perusal of this section would indicate that sub-section (1) au....