2022 (2) TMI 39

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.... the CIT(A) affirmed the levy of penalty to the tune of Rs. 66,000/- u/s 271AAA of the Act, by the AO. 2. Brief facts of the case are that the Assessee had filed its return of income on 11.02.2013 by declaring income to the tune of Rs. 15,11,496/-. Thereafter, search and seizure action u/s 132 of the Act was initiated on 23.08.2011 and during the search of lockers in HSBC Bank situated at Gurgaon and Delhi, maintained by the Assessee jointly with her husband Shri Raman Singh Sidhu, cash of Rs. 13 lakhs (Rs. 12,50,000 + 50,000) was found. Consequently, statement of the Assessee and her husband were recorded on 23.08.2011 and 01.10.2011 respectively u/s 132of the Act. As per revenue‟s allegation, it has been clearly established beyon....

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....ould be imposed u/s 271AAA of the Act on sustaining of the additions in appeal. The AO although considered the explanation of the Assessee, however, imposed the penalty u/s 271AAA of the Act on the ground that the Assessee could not prove the source of this unexplained cash and not declared in her total income. It was assessed as unaccounted income of the Assessee. The said penalty order was challenged by the Assessee before the ld. CIT(A) who vide impugned order dated 27.10.2017 affirmed the levy of penalty amounting to Rs. 66,000/- against which the Assessee is in appeal before us. 4. Heard the parties and perused the material available on record. 5. At the very outset the Assessee has emphasized that in this particular case no spec....

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....entical situation and deleted the penalty. For ready reference the concluding part of the judgment passed by the Hon‟ble Gujarat High Court in case of CIT Vs. Mahendra C Shash is reproduced herein below:- In so far as the alleged failure on the part of the assessee to specify in the statement under Section 132(4) of the Income Tax Act, 1961 regarding the manner in which such income has been derived, suffice it to state that when the statement is being recorded by the authorized officer it is incumbent upon the authorized officer to explain the provisions of Explanation 5 in its entirety to the assessee concerned and the authorized officer cannot stop short at a particular stage so as to permit the Revenue to take advantage of....