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TMI Blog2014 (3) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 1005/Chd/2013, ITA No. 1006/Chd/2013, ITA No. 1007/Chd/2013 - - - Dated:- 27-3-2014 - T. R. Sood (Accountant Member) And Sushma Chowla (Judicial Member) For the Petitioner : J. S. Nagar For the Respondent : Ashok Kumar Goyal ORDER T. R. Sood (Accountant Member) These appeals are directed against the order dated 2.8.2013 of the Ld CIT(A)-I, Ludhiana. Issues are common in these appeals and the same were heard together and are being disposed off by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AAA are not satisfied. It, therefore, follows that first thing to determine is what is the amount of undisclosed income under the given circumstances. The concept of undisclosed income has been clearly defined by explanation to section 271AAA and the same reads as under:- Undisclosed income means- i) any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions found in the course of search under section 132, which has-A 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 previ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f search operation. It also means that if the AO during the course of search operation. It also means that if the AO during the course of search assessment proceedings makes certain additions independent of the incriminating material/documents found during the course of search operation then such an assessed income would not invite penalty proceedings u/s 271AAA but under section 271(1)(c). It also means that initiation of penalty proceedings would depend upon the nature of the income assessed and there could be penalty proceedings u/s 271AAA as well as 271(1)(c) for the same assessment year, however in respect of different income. The AO in the penalty order has clearly accepted that disclosure of income by the assessee to the tune of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of section 271A sub section (2). The requirement of the law is that the assessee should state the manner of earning undisclosed income and also substantiate the same. It would not be correct interpretation of the provisions to stretch the requirement to substantiate the quantum as well. There is no doubt with regard to the fact that the assessee s manner of earning undisclosed income being financing activities has been substantiated by the seized documents. The requirement of the law has therefore been fulfilled as the assessee had stated the manner of earning unaccounted income, substantiating the same and also paid the due taxes along with the interest within the specified time limit. Even if the entire income by any logic i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of this section,- (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 article 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 search; or (ii) any income of the specified previous year represented, either wholly or partly, by any entry in respect of an ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s surrendered during the course of search u/s 132(4) it can be safely assumed that during discussion the assessee must have disclosed the manner. In any case we find force in the submissions of the Ld. Counsel for the assessee that if the explanation of the assessee has been accepted for a sum of ₹ 1987500 out of total surrender of ₹ 4 crores then same manner should have been accepted for 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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