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TMI Blog2018 (6) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 30-5-2018 - SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The ASSESSEE : Shri Salil Kapoor, Advocate Shri Sumit Lal Chandani, Advocate Ms. Ananya Kapoor, Advocate For The REVENUE : Shri S.S. Rana, CIT DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : The appellant, Assistant Commissioner of Income-tax, Central Circle 7, New Delhi (hereinafter referred to as the Revenue ) by filing the present appeal, sought to set aside the impugned order dated 03.06.2013 passed by Ld. CIT (Appeals)-1, New Delhi qua the assessment year 2010-11 deleting the penalty levied u/s 271AAA on the grounds inter alia that :- 1. The order of Ld. CIT (A) is not correct in law and fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities below in the light of the facts and circumstances of the case. 5. Undisputedly, during the search and seizure operation conducted at the business and residential premises of the assessee u/s 132(1) on 11.12.2009, assessee surrendered additional income of ₹ 21 crores. It is also not in dispute that in the return filed by the assessee for AY 2010-11, assessee declared undisclosed income of ₹ 21 crores which includes ₹ 9.25 crores on account of excess stock and ₹ 11.75 crores as income from other sources in the computation of income annexed with the tax return. It is also not in dispute that the assessee has expressed his inability to explain certain seized documents rather stated that those may be included to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( 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 8. Under section 271AAA(2)(i) of the Act, penalty @ 10% of the undisclosed income shall not be imposed if the assessee, 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 substantiates the manner in which the undisclosed income was derived and pays the tax together with interest if any on the undisclosed income. 9. During the course of search, a specific question was put to Shri Anil Mittal, MD of the assessee company to exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to substantiate the manner in which income has been derived by the search team during the course of search, however has made the disclosure only in order to buy peace of mind and to avoid litigation. So, we are of the considered view that the assessee has failed to satisfy the conditions laid down in section 271AAA (2) so as to get the general amnesty u/s 271AAA(2) because the assessee has neither specify the manner nor substantiate the manner in which the undisclosed income was derived. The ld. AR for the assessee relied upon plethora of case laws cited as under :- S. No. Case Name Citation 1. Pr. CIT v. Mukesh Bhai Raman Lal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2014] 48 taxmann.com 327 (Delhi-Trib.) 13. CIT v. Radha Kishan Goel [2005] 278 ITR 454 (Allahabad- Trib.) 14. CIT v. Mahendra C. Shah [2008] 299 ITR 305 15. Mothers Pride Education Pertsonna P. Ltd. (Delhi I.T. Trib.) ITA No. 3372/De1/2011 dated 12.10.2012 16. JCIT Vs. Shri Jayendra N. Shah (Ahmedabad I.T. Trib.) ITA No 1552/Ahd/2016 dated 16.03.2018 17. Santosh Kumar Vs. DCIT (Delhi I.T. Trib.) ITA No. 267/Del/2014 dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 132 (4) to specify and substantiate the manner in which the undisclosed income was derived by returning the following findings :- 16. That the income which was ultimately brought to tax pursuant to the disclosure made, which was voluntary on the part of the assessee is stating the obvious. The assessee merely stated that the sums advanced were undisclosed income. However, she did not specify how she derived that income and what head it fell in (rent, capital gain, professional or business income out of money lending, source of the money etc). Unless such facts are mentioned with some specificity, it cannot be said that the assessee has fulfilled the requirement that she, in her statement (under Section 132 (4)) substantiates the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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