9911796707
TMI Blog2012 (12) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... and issue as well as year of dispute is same. Therefore we pass common order for both. 2. The ld. A.O. observed that during the year under consideration, the assessee made a disclosure of Rs. 95 lacs in the return of income in respect of unexplained jewellery, unexplained cash and on-money payment for Akola land. Therefore, penalty proceeding u/s.271AAA is initiated in respect of undisclosed income of Rs. 95 lacs. The ld. A.O. before imposing penalty u/s.271AAA issued show cause notice on 29.12.2010 and 18.05.2011 which was replied by the appellant on 06.06.2011. The assessee's reply was considered which was not found convincing to him due to the search and seizure operation was carried out u/s.132 of the IT Act in case of Gujarat Amb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly at Rs. 9,85,000/-. 3. Being aggrieved by the penalty order of the A.O., the assessee carried the matter before the CIT(A) who had deleted the penalty by observing as under: "The AO did not follow the provisions of section 271AA, where sub-section(2) of section 271AAA bars the AO from imposing penalty where time is available for filing of return with respect to income disclosed during search, the manner of earning which has been specified and taxes have been paid on such income. All the aforementioned conditions available u/s.271AAA to the appellant, have been fulfilled including the payment of taxes and in this background, the penalty of Rs. 9,50,000 is directed to be deleted." 4. Now the Revenue as well as assessee carried t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed CIT(A) had deleted the penalty due to the following reasons: (1) The assessee had voluntarily disclosed the sum of Rs. 50,00,000/- during the search proceedings with request that no penalty should be levied in respect of such disclosure. (2) During the post search proceedings no specific question as regards manner of earning of undisclosed income or substantiation thereof was put forth by the revenue. (3) The assessee had also paid due tax for the undisclosed income of Rs. 50,00,000/- declared voluntarily. (4) In the decision rendered by the jurisdictional High Court of Gujarat in the case of CIT Vs Mahendra C. Shah (2008) 299 ITR 305 (Guj) it was held that when undisclosed income admitted by the assessee has been offered for tax in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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