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TMI Blog2016 (6) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act, 1961 without appreciating that "Trade Advances" is only application and not source of income. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in holding that the assessee was not asked in statement u/s. 132(4) to substantiate the manner of deriving income without appreciating that in clause (ii) of Sec. 271AAA(2), there is no reference to section 132(4) and the assessee failed to substantiate the manner of deriving income even during the assessment proceedings. 3. The order of the CIT(A) is erroneous and is not tenable on facts and in law. 4. The appellant craves leave to add, alter or amend any / all of the grounds of appeal before or during the course of the hearing of the appeal." 2. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income had been earned out of real estate business conducted by the assessee during the year. iii) That the assessee has already paid the IT on the said income alongwith interest thereon. 2.1 After considering the aforesaid reply filed by the Assessee, AO observed that the assessee had not specified the manner in which the undisclosed income was earned and also failed to substantiate, it and accordingly, he imposed the penalty of Rs. 16,00,000/- on the assessee for such failure by passing an order dated 28.6.2012 u/s. 271AAA of the I.T. Act, 1961. 3. Being aggrieved with the aforesaid penalty order, assessee appealed before the Ld. CIT(A), who vide impugned order dated 26.8.2013 has deleted the penalty and allowed the appeal of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion and arguments of Ld. AR during the appellate proceedings. The Assessing Officer has levied the penalty u/s 271AAA on the ground that the conditions contained in Sub-section(2) specifying the conditions for non-levy of penalty under subsection( 1) of sub-section 271AAA are not fulfilled. Precisely, the Assessing Officer has pointed that the manner in which such income was derived was not stated by the appellant. Further, he concluded that appellant also failed to substantiate the manner in which the undisclosed income was derived. During the appellate proceedings, Ld. AR has filed copy of statement of Sh. Balwant Singh uls 132(4) of I.T. Act dated 3l.7.2009, who has made the disclosure of unaccounted income for the entire group of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed was trade advance, therefore, by virtue of the words "Trade Advance" it is apparent that it is unaccounted business income. The appellant has paid taxes on such undisclosed income, the Assessing Officer has assessed such income as business income without making any additions, therefore, in my view the mannered to earn undisclosed income was there in the statement U/S 132(4). It is not disputed that there was disclosure U/S 132(4) of I.T. Act. and the Assessee has honoured the disclosure and paid tax thereon and filed return to that affect. I have considered the judicial pronouncements relied upon by Ld. AR cited supra namely :- * Hon'ble ITAT Delhi in the case of Mothers Pride Education Personna (P) Ltd. vs. DCIT (ITA No. 3372/DeI/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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