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TMI Blog2016 (1) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... s under sub-section 2 thereof. The Revenue neither point out any distinction on facts nor does it file any evidence disputing the lower appellate findings on factual aspects that the assessees had declared their undisclosed income under the head 'business'. We affirm the CIT(A)'s order deleting the impugned penalties accordingly. - Decided in favour of assessee. - ITA No. 1141, 1146, 1147/Ahd/2012 - - - Dated:- 6-11-2015 - Pramod Kumar, AM And S. S. Godara, JM For the Appellant : Shri Samir Vakil, Sr. DR For the Respondent : None (Written Submission) ORDER Per S. S. Godara, Judicial Member These three Revenue's appeals for assessment year 2009-10 in case of different assessees arise from separate orders of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above state undisclosed incomes did not describe manner of deriving the same or they had not provided for specific details. He accordingly held that first and second conditions in the exemption provision u/s.271AAA(2) had not been fulfilled in these three cases. This resulted in imposition of impugned penalties amounting to ₹ 41,10,205/- in the first case and ₹ 10lacs each in the latter two i.e. @ 10% of the undisclosed incomes hereinabove. 5. These assessees preferred appeal. We find that the CIT(A) deletes the impugned penalties. We treat ITA No.1141/Ahd/2012 as the lead case comprising the lower appellate order as under: 5. I have considered the facts of the case mentioned by the AO, the basis of levy of penalty, sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes the manner in which the undisclosed income was derived; and (ii) Pays the tax together with interest, if any, in respect of the undisclosed income. Clause (i) lays down the first condition that undisclosed income should have been admitted by the assessee in the statement u/s 132(4) and assessee should specify the manner in which it has been derived. Shri Dipesh L Shah, in the statement recorded on 20.01.2009, in the course of search stated in reply to questions no.34 that he was disclosing ₹ 4,11,02,053/- for financial year 2008-09 representing current year income. He clearly mentioned that undisclosed income was declared on account of current year business income. This clearly implies that the income is earned in curren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question and answer form and there. would be no occasion for an assessee to state and make averments in the exact format stipulated by the provisions considering the setting in which such statement is being recorded. Secondly, considering the social environment it is not possible to expect from an assessee, whether literate or illiterate, to be specific and to the point regarding the conditions stipulated by the second exception while making statement under section 132(4). Even if the statement does not specify the manner in which the income is derived, if the income is declared and tax thereon paid, there would be substantial compliance not warranting any further denial of the benefit. 5.3 In the case of CIT v. Radha Krishna Goel [200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the business which he was carrying on. The object of the provision is achieved by making the statement admitting the non-disclosure of money, bullion, jewellery, etc. thus, much importance should not be attached to the statement about the manner in which such income has been derived. It can be inferred on the facts and circumstances of the case, in the absence of anything to the contrary. Therefore, mere non-statement of the manner in which such income was derived would not make explanation 5(2) inapplicable. (P.454). 5.4 After going through the statement recorded under section 1 32 (4) of the IT Act and the principles laid down by the Honorable Gujarat High Court and Allahabad High Court, it is held that the AO has wrongly rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmitted in the course of search. It is undisputed fact that the tax and interest had been paid by the assessee. The Assessing Officer himself stated the same in the penalty order. On the basis of principles laid down by the Honorable jurisdictional High Court and by the Allahabad High Court in the above cited cases the assessee has made disclosure of unaccounted income while recording a statement under section 132(4) of the Income tax Act and paid the taxes with interest. The returned income included disclosure amount of ₹ 4,11,02,053/- made during search while recording statement u/s. 132(4) of the Act which represented by unaccounted stock and receivables. The A.O. has not made any comment or observation about the source and na ..... X X X X Extracts X X X X X X X X Extracts X X X X
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