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TMI Blog2016 (7) TMI 1231X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 4,22,26,000/- which represented the unexplained money in the form of sundry creditor written off. Thus in this case AO has not correctly applied the provisions of section 271AAA of the Act which cannot be sustained, therefore, AO’s action for levying penalty being 10% of undisclosed income is hereby deleted. - Decided in favour of assessee - ITA No. 1026/JP/2015, ITA No. 1027/JP/2015, ITA No. 1028/JP/2015 - - - Dated:- 20-7-2016 - SHRI KUL BHARAT, JM SHRI VIKRAM SINGH YADAV, AM For The Revenue : Shri R.A. Verma (Addl.CIT) For The Assessee : Shri P.C. Parwal (CA) ORDER PER SHRI KUL BHARAT, JM. These are three appeals by the revenue against different orders of ld. CIT (A) dated 30.10.2015 in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per para 6 of assessment order and a notice was issued on 31.3.2014 and duly served upon the assessee along with assessment order. The assessee has not filed any appeal against the assessment order dated 31.3.2014. Another show cause notice dated 4.8.2014 was issued to the assessee to show cause as to why penalty u/s 271AAA may not be levied and date of compliance was fixed for 27.8.2014. In compliance, the assessee filed detailed written submission on 27.8.2014. The submissions of the assessee on the issue of surrender made in the return of income filed were considered by the AO carefully but he could not found it acceptable in the light of facts of the case. The AO held that since the assessee has neither specified nor substantiated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me for the specified year included the undisclosed income of ₹ 4,22,26,000/- which represented the unexplained money in the form of sundry creditor written off. The ld. CIT (A) has given a finding of fact as under :- Undoubtedly, in accordance with sub section (2) of Section 271AAA of the Act, the penalty provisions under sub-section (1) of Section 271AAA will not 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 any, in respect of the undisclos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not able to substantiates the manner in which the undisclosed income was derived. Here, dictionary meaning of substantiates needs further elaboration. The dictionary meaning of substantiate (as a verb) is to establish by proof or competent evidence. Further, the word Substantiate is related to the word substantial, which means solid . So, to substantiate a claim is to make it solid or believable. If the evidence given in support of an argument is weak and unconvincing, that evidence can be described as insubstantial. The legal meaning of to substantiate is as under :- (i) As verb . To establish the existence or truth of a particular fact through the use of competent evidence; to verify (ii) As noun . Substantiation nou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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