9911796707
TMI Blog2012 (12) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. CIT(A) has erred in law and on facts in directing the AO to delete the penalty of Rs.5,00,000/- levied by the Assessing Officer u/s. 271AAA of the Act." 3. Brief facts: - A search action u/s 132 of the Act was carried on in the residential and business premises of the assessee on 24-09- 2008 and assessment order u/s 143(3) read with section 153A of the Act was passed on 27-12-2012 wherein the assessee had admitted undisclosed income of Rs.50,00,000/- as her additional income under the head income from other sources. The learned AO initiated penalty proceedings us/ 271 AAA of the Act and levied penalty of Rs.5,00,000/- with the following observations: "However, it is seen that in the return of income filed by the assessee for AY 2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee failed to fulfill first two conditions. Therefore, the assessee's case is not covered in section 271AAA (2) of t he Act. As per the section 271AAA (a) 'Undisclosed income' means - (i) Any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or other valuable articles or thing or any entry in the books of account or other documents or transactions found in the course of a search under section 132, which has - (A) not been recorded on or before the date of search in the books of account or other documents maintained in the normal course relating to such previous year; or (B) Otherwise not been disclosed to the Chief Commissioner or Commissioner before the date of the search; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, order of the A. O., the submissions of the appellant as also the statement of the appellant's son viz. Shri Mitesh Agarwal recorded u/s 132 (4) during the course of search. It is seen that during the course of search, pending verification of the seized material, the appellant's son viz. Shri Mitesh Agarwal in his statement recorded u/s 132(4) of the Act, had voluntarily disclosed a total amount of Rs.17 Crores for the entire group, with a request that no penalty should be levied in respect of the said disclosure. It is further seen that after obtaining the said disclosure with a request of not levying penalty, the statement u/s. 132(4) has been concluded by the Authorized Officer and no specific question as regards manner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corded u/s. 132(4), which has been accepted by the A. O. during the course of assessment. Further, the reasoning of the A. O. that the appellant has not specified the manner of earning the undisclosed income and has failed to substantiate the same, it also not in view of the decision of the jurisdictional High Court of Gujarat in the case of CIT v. Mahendra C. Shah (supra), since, no question as regards specification of manner of earning the undisclosed income and substantiation thereof was put forth by the Authorized Officer while recording the statement u/s. 132(4) during the course of search. Thus, considering the facts of the case that the undisclosed income has been admitted in the statement recorded u/s. 132(4), the same has been of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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