TaxTMI 
TaxTMI 
2018 (9) TMI 1560
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....ndividual, who was subjected to search and seizure operations at his premises at Kolkata on 14th November, 2011. Later on, this case was centralised with Central Circle-14, New Delhi alongwith Jindal Group of cases, which were also covered by the said search. The relevant portion of the assessment order reads as under:- "The assessee was confronted on the documents found and seized from his residence premises 20C, Belvedre Alipore, Kolkata, from factory premises of M/s Jindal India Ltd, Jindal Photo Ltd at 2/1, Ahmed Mamuj Street Liluah, Howrah, and Annexure JJ/1 & JJ/7 impounded from factory premises of Jindal India Ltd Anjul, Howrah. These documents contains details of cash payments made to various parties for acquisition of land. These document when confronted, the assessee has offered has the amount for which the source could not be explained for taxation and filed the return disclosing Rs. 30,00,00,000/- on account of these discrepancies. The case is assessed u/s 143(3) of the Income Tax Act, 1961 at returned income of Rs. 30,28,31,563/-. Penalty proceedings u/s 271AAA is being initiated separately as although the assessee has admitted the undisclosed income however he h....
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....r in the assessment order or in the penalty order under Section 271AAA. It is also apparent that this contention was not raised by the Revenue in the appeal preferred by them before the Tribunal against the order passed by the Commissioner of Income Tax (Appeals) deleting the penalty under the said Section. Even in the grounds of appeal raised before us, this contention is not raised. 7. A perusal of the order passed by the Commissioner of Income Tax (Appeals) deleting penalty would indicate that the respondent-assessee during the course of the assessment proceedings had submitted several letters to substantiate the manner in which the undisclosed income of Rs. 30 crores was derived. Reference in this regard can be made to the following submissions made before and relied by the Commissioner of Income Tax (Appeals):- "1.1 A search and seizure operation under section 132 of the Income Tax Act, 1961was carried out in the case of Jindal Group on 14/11/2011 and during the course of search and seizure operation certain documents were found and seized from the premises of M/s Jindal (India) Limited at 2/1, Ahmed Mamuji Street, Liluah, Howrah - 711204 and from residential premises of....
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.... the basis for denying the benefit of immunity from penalty under sub section (2) of section 271AAA of the Income tax Act, 1961. (Pages 19 to 28 of the Paper book) 1.7 The appellant also submitted that the said offer of additional income of Rs. 30,00,00,000/- was made merely to buy peace and to avoid litigation and was subject to there being no penalty and prosecution under the provisions of the Act. (Pages 19 to 28 of the Paper book) 1.8 However, the learned assessing officer imposed penalty under section 271AAA of the Income tax Act, 1961 only on the basis that the appellant failed to substantiate the manner in which the undisclosed income was derived without appreciating the fact that no specific question was asked by the authorized officer during the course of recording statement under section 132(4) about the manner of deriving undisclosed income and also without appreciating the fact that the appellant has substantiated the manner in which undisclosed income was derived before the learned assessing officer during the course of assessment proceedings. The learned assessing officer alleged in the impugned order that: "However, in order to escape from the pe....
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....ubmitted that the income of Rs. 30,00,00,000/- declared under the under the head of Income from other sources has been earned during the year relevant to the assessment year 2012-13, from transactions in land / properties and also from other speculation activities. It is also pertinent to note that the appellant vide reply dated 25/03/2014 and 26/03/2014 also furnished the break-up of Rs. 30,00,00,000/- along with documentary evidence earned from transactions in land / properties / speculation activities. Thus, the appellant during the course of assessment proceedings has filed detail of nature and bifurcation of the undisclosed income of Rs. 30,00,00,000/- as asked by the learned assessing officer. (Pages 9 to 18 of the Paper book) 1.13 It is pertinent to note that the learned assessing officer alleged in the impugned order that the appellant has not fulfilled one of the condition of 271AAA (2) of the Income tax Act, 1961 i.e. "substantiate the manner in which the undisclosed income was derived", which is essential to be complied in order to get immunity from the imposition of penalty under section 271AAA of the Income tax Act, 1961. (Pages 1 to 2 of the Paper book) 1.....