2020 (4) TMI 19

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....CIT(A) erred in deleting the entire penalty levied u/s 271AAA of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short]. 3. Briefly stated, the facts of the case are that search and seizure operations were carried out at the residential as well as office premises of M/s Kundan Rice Mills Ltd and Jai Bhagwan Garg Group, Panipat on 16.03.2011. 4. During the course of search proceedings, the father of the assessee disclosed additional income of Rs. 15 crores over and above the regular income of the group companies/ associates/individuals in his statement u/s 132(4) of the Act. 5. Taking a leaf out of this, the Assessing Officer was of the opinion that the assessee, though declared Rs. 15 crores and has paid ....

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....respective parties as per the bifurcation provided to the ADIT (Inv) was accepted by the AO. It was further stated that the due taxes also stood paid. It was also stressed that the surrender of the additional income was admittedly earned from various business transactions carried out in the past outside the books of accounts. In other words, it is assessee's contention that all the three conditions as laid down in sub section (2) of section 271AAA was fulfilled. Reliance was also placed on various judgments. I find that the facts of the case at hand, apart from those cited by the assessee, are also covered by the various decisions of the Hon'ble Chandigarh Bench of the Tribunal viz ACIT vs. Munish kumar Goyal reported in 4....

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.... u/s 132(4) read with section 271 AAA of the Income Tax Act, 1961 for the financial year 2010-11 i.e. relevant assessment year 2011-12. This additional income is being disclosed to buy peace of mind and to avoid litigation and subject to no penalty under Income Tax Act, 1961 This disclosed amount i$~mainly earned from business income. I offer to pay the taxes on this disclosed amount before the due date of filing of return for Assessment Year 2011-12. The bifurcation of this disclosed income will be furnished within weeks time." 11. It can be seen from the above that in the statement itself, the assessee has made it very clear that disclosed income is earned from business income. This is further substantiated from the fact that ....