2017 (3) TMI 1522

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... is that it has enhanced the amount to ₹ 50,01,857/- by applying a G.P. rate of 4.4% on estimate basis. Now, this is more of a derived or inferred income based upon estimation and not on the basis of the material seized or materials that can be deduced from the documents etc. so seized. For the foregoing reasons, the Court is of the opinion that in the circumstances of the case, the interpretation given by the ITAT to Section 158BFA (2) does not call for interference; it is reasonable. - Decided n favour of assessee. - ITA 647/2016 - - - Dated:- 14-3-2017 - MR. S. RAVINDRA BHAT MR. NAJMI WAZIRI JJ. Appellant Through: Mr. Sanjay Kumar, Jr. Standing Counsel with Mr. Vikrant A. Maheshwari, Advocate. Respondent Through: .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... T could not have deleted the penalty. The Court is of the opinion that besides the fact that the findings are concurrent, the ITAT s reasoning is sound. Section 158BFA reads as follows: - (1) Where the return of total income including undisclosed income for the block period, in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A on or after the 1st day of January, 1997, as required by a notice under clause (a) of section 158BC, is furnished after the expiry of the period specified in such notice, or is not furnished, the assessee shall be liable to pay simple interest at the rate of 38[one] per cent of the tax on undisclosed income, determined under clause .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Assessing Officer is in excess of the income shown in the return and in such cases the penalty shall be imposed on that portion of undisclosed income determined which is in excess of the amount of undisclosed income shown in the return. A plain reading would show that the penalty is leviable under Section 158BFA. The first proviso contains four situations. All of them contemplate the filing of a return in block proceedings and the disclosure of income that was hitherto not revealed in the original proceedings. The second proviso applies only where the income disclosed during the block proceedings is exceeded in the final assessment proceedings, by an objective determination. In the facts of this case, the Revenue has in fact accepted .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X