2018 (9) TMI 875

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....Ld. CIT(A) has erred in deleting the total penalty levied u/s 271AAA even when the assessee was given appropriate opportunity of being heard?." (ii) Whether on the facts and in the circumstances of the case, the Ld. CIT(A) was right in granting relief to the assessee when even the basic requirement of the section 271AAA is not fulfilled i.e. The assessee failed to elaborate the manner in which the undisclosed income was derived?." The grounds of appeal are as under:- C.O No. 270/Del/2015 "That in the present case penalty u/s 271 AAA in respect of the Assessment Year under reference was imposed on the Respondent Company as well as the two directors of the said Company on the same fact and same seized records. The penalty has been delete....

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....ndisclosed income was derived. 6. The Ld. AR submitted that the assessee during the assessment proceedings has explained the manner in which undisclosed income was derived. In fact, the Assessing Officer recorded the statement of one Mr. Mohinder Kumar Gupta, Director of the Company and as regards Question No. 3, the Director of the Company has explained the manner in which the income was derived. Thus, Section 271AAA of the Act will not be attracted in assessee's case. The Ld. AR further relied upon the decision of the Tribunal in the case of Directors of the assessee company (ITA No. 1835/del/2013 & ITA No. 1836/Del/2013, Sita Ram Gupta Vs. ACIT & Mohinder Kumar Gupta Vs. ACIT order dated 30th June, 2014 for Assessment Year 2009-10) wher....

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....thorities. The same was accepted by the AO, without variation, this fact itself evidencing the assessee having passed the test of Section 271AAA of the Act. Then, there is no specific format/procedure prescribed in the Act for specifying and substantiating an undisclosed income. The statement of the assessee, specifying the manner in which the undisclosed income was derived and substantiated, did not face any rebuttal or rejection at the hands of the AO. As per the statement recorded (which statement, though not of the assessee in ITA No.1835/Del/2013, was of his son, i.e., the assessee in ITA No.1836/Del/2013 and was ratified by him, as pointed out by the Ld. Counsel for the assessees before us), it had been admitted that the assessee had ....