TaxTMI 
TaxTMI 
2019 (2) TMI 812
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....F THE INCOME-TAX ACT. 1961 (a) On the facts and in the circumstances of the case, the Commissioner of Incometax (Appeal), hereinafter referred to as the "CIT (A)", has erred in confirming the penalty of Rs. 2,94,688/- levied u/s. 271 AAA of the Income-tax Act, 1961. (b) Your appellant respectfully submits that his case is covered by the provisions of sub-section (2) of section 271 AAA of the Act and accordingly the appellant is eligible to get the immunity as provided in the said sub-section. (c) On the facts and in the circumstances of the case, the CIT (A) has erred in confirming the levy of penalty for the reason that the appellant has not been able to substantiate the manner in which the undisclosed income was....
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....of his undisclosed investment. In the course of the assessment proceedings, penalty proceedings u/s 271AAA was initiated and a notice u/s 274 was issued requiring the assessee to show cause why penalty u/s 271AAA should not be imposed in his case. 4. In response to the above, the assessee filed its submission vide letter dated 12.09.2014 wherein the assessee stressed that assessee has available provisions in the act to revise the return of income and hence this should not be treated against the assessee. Secondly, the assessee stressed that he has paid the taxes in the form of pay orders dated 22.07.2011 aggregating to Rs. 29,41,015/-. Thirdly the assessee stated that income of Rs. 29,41,015/- was offered to tax to buy peace of mind a....
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....ant on the above ground. (viii) during the course of recording of the statement u/s. 132(4) of the Act, the appellant was not asked any question as regards the manner in which the undisclosed income has been derived by the appellant. (ix) Even during the assessment proceedings or penalty proceedings, the assessing officer has also not asked any questions as regards the manner in which the income has been derived. (x) the appellant could not have described the manner of earning the undisclosed income because he was never asked to do so and therefore, the appellant cannot be faulted for not fulfilling the condition laid down in clause (a) of section 271AAA and immunity envisaged in sub section (2) of the section 271....
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....hall be imposed if the assessee- (i) in the course of search, in his statement under sub- section (4) of section 132, admits the. undisclosed income and specified the manner in which search income has been derived; (ii) substantiate the manner in which the undisclosed income was derived; and (iii) pays the tax, together with interest, if any, in respect of the undisclosed income. 9. He found that the assessee has not complied with the conditions and he observed as under: 5.5 Thus, two of the necessary conditions for the assessee to escape the provisions of subsection (1) of section 271AAA are - (i) the assessee in the course of searqh, in his statement under sub- section (4) of section 132, specified t....
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.... 13. In this regard, the ld. Counsel of the assessee placed reliance upon the following case laws: 1. Asst. CIT vs. A. N. Annamalaisamy HUF [135 TTJ 98 (Chennai)] 2. CIT vs. Mahendra C. Shah [299 ITR 305 (Guj)]; 3. Pr. CIT vs. Mukeshbhai Ramanlal Prajapati [398 ITR 170 (Guj.)]; 4. ACIT vs. Emirates Technologies Pvt. Ltd. (in ITA No. 476/Del/2014 vide order dated 28.10.2016); 5. Pr. CIT vs. Emirates Technologies Pvt. Ltd. [399 ITR 189 (Del.)] 14. The ld. Departmental Representative (ld. DR for short) submitted that the penalty u/s. 271AAA has been rightly levied. He submitted that despite accepting the undisclosed income in the search proceedings, the assessee has not disclosed the same in the ....