9911796707
TMI Blog2016 (7) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome was generated. Considering the facts that the assessee had paid taxes on the undisclosed income and had stated the seized cash represented his professional income, we are of the opinion that no penalty is leviable u/s. 271AAA of the Act. In our opinion, the judgment delivered by the Hon’ble Gujarat High Court in the case of Mahendra C. Shah (2008 (2) TMI 32 - GUJARAT HIGH COURT ) support the view taken by the Tribunal in the above mentioned cases. So, reversing the order of the FAA, we decide effective ground of appeal in favour of the assessee . - ITA/745/Mum/2015 - - - Dated:- 19-7-2016 - Shri Rajendra, Accountant Member And C. N. Prasad, Judicial Member For the Revenue : Shri N. Sathya Moorthy-DR For the Assessee : Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 5. 49 lakhs (10% of ₹ 54. 97 lakhs). 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority(FAA). Before him, it was contended that in the statement recorded u/s. 132(4), on 20/12/2010, the assessee had stated that the cash found in the lockers represented his income, that in response to question 4 of the statement, he had stated that income/cash was from his professional knowledge and it had no connection with any of the fund of Ispat group, that at the time of the search proceedings the assessee was not working with the group as he had left the job and had started his legal activity. Referring to the provisions of section 271 AAA(ii) of the Act, the assessee argued that penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported the order of the FAA. 5. We have heard the rival submissions and perused the material before us. We find that cash of ₹ 54. lakhs was seized from the assessee, that he admitted that it represented his unaccounted professional receipts, that he had paid due taxes on the undisclosed income, that the FAA had confirmed the penalty as he was of the opinion that the assessee had not substantiated the disclosure. We find that in the case of Sita Ram Gupta(supra), the Tribunal has held as under : . . . There is no specific format/procedure prescribed in the Act for specifying and substantiating and undisclosed income. The statement of the assessee, specifying the manner in which the undisclosed income was derived and substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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