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TMI Blog2014 (10) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... r the whole of the amount. It is not clear from the penalty order how explanation for ₹ 1987500 was accepted. In any case the Ld. CIT(A) has considered all these issues in detail and the D.R. for the Revenue has not referred to any material or decision which can controvert the findings of the CIT(A). In the following cases which have been relied on by the Ld. Counsel for the assessee which was clearly held that penalty is not leviable - Decided in favour of assessee - ITA No. 1080/Chd/2013, ITA No. 1081/Chd/2013, ITA No. 1082/Chd/2013 And Cross objections No. 41/Chd/2013 Arising out of ITA No. 1082/Chd/2013 - - - Dated:- 28-10-2014 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER For the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p for consideration of the Tribunal in ITAs No. 1005/Chd/2013 in case of ACIT V. Gian Chand Gupta, 1006/Chd/2013 in case of ACITV V. Mohinder Gupta and 1007/Chd/2013 in case of ACIT V. Sanjay Kumar Goyal and the issues were decided against the revenue following the order of the Tribunal in ITAs No. 1003 1004/2013 in case of Munish Kumar Goyal and Harish Kumar Singla vide paras 4 to 11 which read as under: 4 After considering the rival submissions and the material on record, we find that identical issues came up for consideration of the Tribunal in ITAs No. 1003 1004/2013 in case of Munish Kumar Goyal and Harish Kumar Singla which were adjudicated vide paras 8 to 13 which is as under: 8 We have gone through the rival submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied previous year which is found to be false and would not have been found to be so had the search not been conducted; . The perusal of above detailed definition shows that it is exhaustive definition and there is clear identification of the income represented either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of accounts or other documents of transactions found in the course of search under section 132 . It is seen that there is clear and direct association between the income on one hand and assets / documents on the other hand found during the course of search. It follows that if certain income is not represented by any assets/documents/entry found during the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not with reference to any assets/documents found during the course of search. It is only because the said disclosure happened during the search that the same has been clubbed in the definition of undisclosed income requiring the assessee to fulfill the condition as specified in sub section (2) of 271AAA. I am of the clear view that income to the extent of ₹ 3,80,12,500/- does not come under the definition of undisclosed income as defined under section 271AAA and therefore no penalty u/s 271AAA could be levied. The second aspect of the penalty order passed by the Assessing Officer is that whether the assessee had fulfilled the requisite conditions as specified under sub section (2) of section 271AAA. The Assessing Officer has accepte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Act, direct that, in a case where search has been initiated under section 132 on or after the 1st day of June, 2007 43[but before the 1st day of July, 2012], the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year. (2) Nothing contained in sub-section (1) shall apply if the assessee,- (i) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived; (ii) substantiates the manner in which the undisclosed income was derived; and (iii) pays the tax, together with interest, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee during the course of search in a statement admits to some undisclosed income and pay taxes on the same then penalty cannot be levied in terms of sub-sec (1) of this Section. In the case before us, the amount of ₹ 4 crores which was surrendered during search, has been declared by the assessee in the return and taxes have been paid accordingly. Therefore the assessee is normally entitled for the immunity provided in Sec 271AAA itself. However, the Revenue has raised further dispute that whether the assessee has disclosed the manner in which income has been earned. In the penalty order passed by the Assessing officer following questions and answers have been extracted: Q. Do you want to say anything more ? Ans. I voluntari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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