2021 (10) TMI 1190

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....s. 271AAA of the Income Tax Act, 1961 (the Act) concerning AY 2012-13 wherein Rs. 20,74,830/- was confirmed by the CIT(A). 2. Briefly stated, the assessee is an individual engaged in the business of land developers and contractors. A search was conducted on 21.03.2012 at the premises of the assessee. During the course of search, the assessee admitted an unaccounted income of Rs. 2 Crores or thereabout. The income returned including the unaccounted income filed under s.153A of the Act was assessed at the same figure. The penalty under s.271AAA of the Act amounting to Rs. 20,74,830/ - (being 10% of undisclosed income) was imposed by the AO for AY 2012-13 in quest ion on the ground that conditions specified in Section 271AAA of the Act for ex....

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....d the penalty and the same is hereby sustained." 4. Further aggrieved, the assessee preferred appeal before the Tribunal. 5. The learned counsel for the assessee submitted, at the outset, that there was no occasion for the assessee to meet the requirement of Section 271AAA(2) of the Act. In elaboration, the learned counsel for the assessee submitted that no specific question was put by the authorized officer for providing the manner in which such undisclosed income has been derived. The question of substantiation also did not arise in view of absence of enquiry in this regard. For this position, the learned counsel adverted to page no. 9 to page no.14 of the paper book showing statement for surrender on behalf of the assessee. He pointed ....

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....lure, if any is attributable to the Revenue and not upon the assessee. 6. The learned DR for the Revenue, on the other hand, submitted that the conditions prescribed under s.271AAA(2) of the Act has not been satisfied in the instant case. The assessee failed to satisfy the pre-requisites laid down in section 271AAA(2)of the Act and therefore the assessee is not eligible to claim exemption from penalty under the aforesaid provision. 7. We have carefully considered the rival submissions. As per Section 271AAA(2) of the Act, one of the conditions for obtaining relief from imposition of penalty under s.271AAA of the Act is that the assessee in the statement recorded under s.132(4) of the Act admits the undisclosed income, pays the taxes there....