2018 (6) TMI 65

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....(Appeals)-1, New Delhi qua the assessment year 2010-11 deleting the penalty levied u/s 271AAA on the grounds inter alia that :- "1. The order of Ld. CIT (A) is not correct in law and facts. 2. On the facts and circumstances of the case Ld. CIT(A) has erred in deleting the penalty imposed by AO amounting to Rs. 2,10,00,000/- u/s 271AAA of income Tax Act. 1961." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee is into the business of rice milling and processing. During the search and seizure operation conducted at the business and residential premises of SSA International Group of companies wherein they have admitted Rs. 21 crores as undisclosed income. AO completed the asse....

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....turn. It is also not in dispute that the assessee has expressed his inability to explain certain seized documents rather stated that those may be included to form part of the amounts surrendered during search and seizure operation. It is also not in dispute that assessee has already paid tax together with interest on the surrendered income of Rs. 21 crores. 6. In the backdrop of the aforesaid facts and circumstances of the case, order passed by ld. Revenue authorities below, arguments advanced by ld. AR for the parties, the sole question arises for determination in this case is :- "as to whether assessee has failed to substantiate the manner in which the undisclosed income of Rs. 21 crores was derived and is liable to be penaliz....

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.... income. 9. During the course of search, a specific question was put to Shri Anil Mittal, MD of the assessee company to explain certain seized documents and discrepancies in the stock who has answered as under :- "I have seen question no.43 and the reply of Shri A.K. Nijhawan to it and acknowledge the same to be true. Regarding the discrepancy to stock found by your search team, during the course of search, I am unable to reconcile the same. However, in order to buy a peace of mind and avoid the litigation with department, I will accept the inventory of stock taken by your team during the course of search on 11.12.2009. This will form the part of surrender which I had already made at the time of search. This voluntary disclosure....

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.... v. Mukesh Bhai Raman Lal Tax Appeal 434 of 2017 2. PCIT v. Emirates Technologies Pvt. Ltd. [2017] 399 ITR 189 (Delhi) 3. PCIT v.. Sandeep Gupta (DHC) ITA No. 967-68/2017 dated 13.11.2017 4. PCIT v. Swapna Enterprise [2018] 401 ITR 488 (Gujrat HC) 5. Smt. Raj Rani Gupta v. DCIT (Delhi I.T. Trib.) ITA No. 3371/De1/2011 dated 30.03.2012 6. ACIT v. Shreenarayan Sitaram Mundra [2017] 83 taxmann.com 231 (Ahmedabad- Trib) 7. Neerat Singal v. ACIT [2013] 37 Taxmann.Com 189 (Delhi- Trib.) 8. ACIT v. Bhavi Chand Jindal (Delhi I.T. Trib.) ITA No. 6810/De1/2015 dated 17.04.2018 9. DCIT v. Ashok Nagrath [2015] 57 taxmann.com 15 (Delhi-Trib.) 10. Ashwani Kumar Arora v.ACIT ....

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.... Apex Court in ACIT vs. Gebilal Kanhaialal 348 ITR 561 (SC) and Mak Data (P.) Ltd. vs. CIT 358 ITR 539 (SC), Hon'ble High Court of Gujarat in CIT vs. Mahendra C. Shah - 299 ITR 305 (Guj.), Hon'ble Allahabad High Court in CIT vs. Radha Kishan Goel - 278 ITR 454 (All.), Hon'ble Delhi High Court in Mothers Pride Education Personnel (P.) Ltd. vs. DCIT ITA No.3372 (Delhi of 2011 dated 12.10.2012, reversed the decision rendered by the Tribunal setting aside the penalty on the ground that in the absence of the query raised by the authorized officer during the course of recording of statement u/s 132 (4) to specify and substantiate the manner in which the undisclosed income was derived by returning the following findings :- "16. That the i....