2016 (2) TMI 1186

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rm was developing a housing project in Noida Extension. During the course of search and seizure operation carried out on Sam India Builtwell Private Limited & Others on 15.06.2011, few documents/loose papers (containing some notings mostly relating to cash expenditure) pertaining to the assessee were also found. Since the management was finding it difficult to correlate each of such cash notings appearing on such documents/loose papers with the entries appearing in the books of account, it had taken a conscious decision, with a view to buy peace of mind and to avoid litigation, to offer lump-sum amount of Rs. 1,25,00,000/- as its income for the year under consideration. In response to the notice issued u/s 153C of the Income-tax Act, 1961 (....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in there is search has been conducted u/s 132 of the I.T. Act. I have gone through the provision of section 271 AAA which reads as under:- "The AO may, notwithstanding anything contained in any other provisions of this Act, direct that in a case where search has been initiated under section 132 on or after the 1st Day of June, 2007 [but before the 1st day of July, 2012], the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year." From the reading of the above section, it is apparent that provision of section 271 AAA can be attracted wherein search action has been conducted u/s 132 of the I.T. Act. In the instan....