2017 (5) TMI 1654

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....." 3. The brief facts of the case are that search and seizure operation u/s 132 of the Act was carried out in Raj Darbar Group of Cases on 31.07.2008. The assessee is one of the members of that group. During the course of search, handwritten details of cash payment for renovation and decoration work of various premises and advances for brokers for acquisition of land at Jaipur was found. On the basis of the same the assessee surrendered Rs. 68604950/- on account of renovation and construction of Delhi and Mathura property and further a sum of Rs. 22541000/- on account of cash advances. In nutshell on the basis of the above diary a sum of Rs. 91145950/- was surrendered. At the time of filing of return of income assessee included a sum of ....

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....the manner of earning undisclosed income therefore if it is not asked. It was further submitted that the income was offered in the return of income and therefore, same was not undisclosed according to explanation 2 section 271AAA. It was further contended that ld CIT(A) has arrived at hypothetical justification for surrender and for substantiating the manner of earning of income. He further relied upon the decision of coordinate bench in case of Rajrani Gupta 3371/ Del 2011 dated 30.03.2012, Mother's Pride Education Ltd. Vs. DCIT 3372/Del/2011, Anand Kumar Bansal ITA No. 1057/Del/2013, Neeraj Singhal Vs. ACIT, 37 Taxmann.com 189, Concrete Developers Vs. ACIT 34 Taxmann.com 62. In view of the above facts it was submitted that the levy of pen....

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....denied and that he has been asked to substantiate the manner of earning undisclosed income and unless asked assessee did not have any opportunity to explain it. Revenue also could not explain that specific question was asked and assessee did not furnish the answer. The condition regarding specifying and substantiating the manner in which undisclosed income has been earned is always difficult for the assessee for obvious reason that no records of such income are kept in a meticulous manner. Generally, no person usually keeps the evidences of undisclosed income which has not been recorded in the regular books of account. The Hon'ble Gujarat High Court in CIT Vs. Mahendra C. Shah 215 CTR 493 has held that assessee having declared the value....