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TMI Blog2017 (10) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... s also noteworthy that the assessing officer accepted this surrender without any questions asked. Even if for the sake of argument, the same is accepted as to be cash found during the course of search, it is undisputed that the assessee has paid tax due thereon. The assessee has already explained the source that is savings/pin money of his wife and as far as the substantiation is concerned, it would be relevant to mention here that given the fact that it is a search case, the question of specifying and substantiating the manner in which the undisclosed income has been derived can be somewhat general and omnibus and no precise calculations or computations can be done with reference thereto. Thus we are of the considered view that the lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment proceedings under section 143 (3) of the Income Tax Act 1961, the assessee surrendered an amount of ₹ 3 Lacs for the assessment year under consideration which was shown in the computation of income under the head other sources . Assessment was completed under section 143 (3) of the Income Tax Act, 1961 after making an addition of ₹ 11,92,800/- on account of unexplained cash. Subsequently, penalty proceedings under section 271AAA of the Income Tax Act, 1961 were initiated by issuance of notice under section 274. It was the response of the assessee that penalty proceedings under section 271AAA of the Income Tax Act, 1961 had not been initiated in the assessment order passed under section 143 (3) of the Income Tax Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was also submitted that the assessee s son Sh. Anurag Jaipuria had offered ₹ 5 crores as income in his hand, his family members, HUF, firms and its partners, companies and its directors and associates in his statement recorded under section 132 (4) of the Income Tax Act, 1961 during the course of search and seizure operation with the understanding that no penalty proceedings of any kind will be taken against him and his group. It was also submitted that the additional income of ₹ 3 Lacs was surrendered by the assessee in his computation of income only to honour the commitment made to disclose the additional income by the son of the assessee even though the source of the said cash found was duly explained by the assessee in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... June, 2007, the assessee shall pay way of penalty, in addition to tax, if any payable by him a sum computed at the rate of ten per cent of the undisclosed income of the specified previous year. ( 2) Nothing contained in sub-section (1) shall apply if the assessee: ( i) In the course of 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 undisclosed income 5.1 The facts of the case reveal that the amount was found during the course of search which the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the surrendered income on the basis of returns filed by an assessee, satisfaction as to the specifying and substantiating the manner in which the same has been earned gets answered automatically. In this regard the following comments of the Income-Tax. Appellate Tribunal are topical and relevant: We have heard the rival contentions and perused the material available on record. On consideration of the facts and circumstances of the case, we are inclined to hold that no definition could be given to the specified manner insofar as the very statement on oath u/s 132(4) specifies the manner on which the assessee is prepared to pay tax thereon. The inscribing in the books of account was taken care of by the assessee when he filed the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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