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TMI Blog2019 (3) TMI 1462X X X X Extracts X X X X X X X X Extracts X X X X ..... r, the assessee has explained the items which have been surrendered at the assessment proceedings. Therefore, no penalty is leviable. - Decided in favour of assessee. - ITA No. 737/Del/2016 - - - Dated:- 27-3-2019 - Shri Bhavnesh Saini, Judicial Member And Shri O.P. Kant, Accountant Member For the Assessee : Shri Manoj Kumar, CA For the Revenue : Smt. Paramita M. Biswas, CIT DR ORDER PER SHRI BHAVNESH SAINI, J.M. This appeal by assessee has been directed against the order of Ld. CIT(Appeals)-24, Delhi dated 07.12.2015 for AY 2012-13, challenging the levy of penalty u/s 271AAA of the I.T. Act. 2. Briefly the facts of the case are that the assessee belongs to Jaipuria Group of cases which was subjected to searc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings giving the disclosure of ₹ 4.96 crores for the group including ₹ 17,24,960/- in his own hands. This break up includes ₹ 3,64,602/- in the hands of the assessee vide letter dated 04.03.2014 in which assessee stated that ₹ 1,07,602/- is on account of school fees, travelling and other party expenses arising from the entries from the seized document and ₹ 2,57,000/- on account of cash seized from his residence. The assessee made a disclosure to buy peace and avoid litigation. The AO has accepted the additional income of ₹ 3,64,602/- without verifying the same, whether, it was undisclosed income earned by the assessee. Nothing has been detected during the course of search and no incriminating material w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 assessee claimed to be his wife s savings/pin money. This amount was not surrendere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... faction 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 returns in pursuance to notice u/s 153A accounting the assets. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. After considering the rival submission, we are of the view that the issue is covered in favour of the assessee by order of ITAT Delhi F Bench in the case of Mahavir Prasad Jaipuria (supra) who is also connected with the same search and connected with the group. On identical facts, the similar penalty has been cancelled by the Tribunal. In the case of the assessee also, assessee declared additional income at the assessment proceedings vide letter dated 04.03.2014 in a sum of ₹ 3,64,602/-. Further, the assessee has explained the items which have been surrendered at the assessment proceedings. Therefore, no penalty is leviable. Following the order of the Tribunal in the case of Mahavir Prasad Jaipuria (supra), we set aside th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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