TaxTMI 
TaxTMI 
2019 (3) TMI 494
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....ed in deleting the penalty of Rs. 38 lakhs imposed under section 271AAA of the Income Tax Act, 1961. 3. Brief facts of the case are that a search was conducted at the premises of the assessee on 20.12.2011. The assessee has filed return of income electronically on 30.9.2012 declaring total income at Rs. 4,30,37,740/-. He included a sum of Rs. 3,80,00,000/- which according to him is part of Rs. 10.13 crores admitted at the time of search by Shri Sunil P. Sewani in his statement recorded under section 132(4). The case of the assessee is that a sum of Rs. 3.80 crores was allocated towards the assessee by Shri Sunil P. Sewani and it was admitted by the assessee also. Bifurcation of Rs. 10.13 crores has been given in the assessment order. The....
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....t identical situation has been considered by the ITAT in the case of Swapna Enterprises (supra). The discussion made by the Tribunal reads as under: "5. We have duly considered rival contentions and gone through the record. For appreciating the controversy involved, it is incumbent upon us to take note of section 271AAA. The relevant part of this section reads as under: "271AAA. Penalty where search has been initiated.- (1) The Assessing Officer 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, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a su....
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....lso been pointed out that the undisclosed income was received by the assessee as on-money. Thus, taking into consideration facts and circumstances, we are of the view that the ld.CIT(A) has rightly deleted the penalty, and accordingly, we dismiss the appeal of the Revenue." 6. In the light of the above, let us examine facts of the present case. The ld.counsel for the assessee drew our attention towards statement of Shri Sunil P. Sewani dated 21.12.2011 recorded under section 132(4) of the Act. Shri Sunil Sewani was confronted with Annexure A/1 containing 53 pages. In reply to question no.4, he admitted undisclosed income of Rs. 13 crores on his behalf and other family members and different companies. There is no dispute with regard to th....
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....and & Co. As regards the bifurcation of the total disclosure of Rs. 13 Crore, the same is as follows: Name of the person Financial Year Amount Sunil P. Sewani Prop. of Sewani Construction 2011-12 70000000 Shri Prahaladbhai K. Sewani, Prop. Prahaladbhai Kishanchand & Co. 2011-12 31300000 Smt. Bhartiben Sewani 2010-11 9200000 Smt. Kiranben S. Sewani 2010-11 9200000 Out of Jewellery found from residence 2011-12 4800000 Out of cash found from residence 2011-12 426000 Misc. disclosure 2011-12 5074000 Total 13,00,00,000 The source of the cash paid for investment in land is income earned from various business activities during the F.Y. 2011-12. The pur....