2017 (4) TMI 1429

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....acts of the case are that assessee is firm engaged in the business of development housing projects. A search under section 132 of the Income Tax Act 1961 was carried out at the business as well as residential premises of infrastructure group of cases on 19.1.2011. During the course of search a statement of Shri Alpeshbhai G. Kotadia was recorded on 20.1.2011. In his statement he has admitted Rs. 15 crores as undisclosed income. A notice under section 142(1) of the Income Tax Act was issued on 11.10.2011 which was duly served upon the assessee. In response to this notice, the assessee has furnished return of its income on 29.9.2011 declaring total income at Rs. 17,11,33,110/-. The AO had issued notice under section 143(2), and thereafter acc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the issue of offered undisclosed income of Rs. 15,00,00,000/-. This order has been passed with the previous approval of the Addl. CIT, Central Range, Surat vide letter No. SRT/Addl.CIT/CR/Approval/153D/CC-1 /2012-13 dtd.22.03.2013." 4. The ld.AO has initiated penalty proceedings under section 271AAA of the Act. He was of the opinion that the assessee failed to disclose the manner of earning this undisclosed income of Rs. 15 crores. Similarly, it has failed to substantiate that manner and therefore it deserves to be visited with penalty. Accordingly, a penalty at the rate of 10% of undisclosed income admitted has been computed at Rs. 1.50 crores under section 271AAA of the Act. Dissatisfied with the levy of penalty, the assessee carried the....