9911796707
TMI Blog2019 (10) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Admittedly, no further question has also been asked to further probe or into the issue, as obviously, the search has revealed the various business incomes and source of income of the assessee. Therefore, conditions Nos.2 3 have also been complied with. In respect of condition No.4, the fact remains that the assessee has disclosed quantities and substantiated the quantities and the variation in the assessment and the returned income is only on account of rates in respect of the gold jewellery. The quantum of the jewellery representing the undisclosed investment in the jewellery has not been varied and the rate which has been adopted by the assessee is not a rate, which is improbable or unsustainable. In fact, the assessee has give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals)-16, Chennai in ITA No.53/C.I.T(A)-18/2015-16 dated 13.02.2019 for the assessment year 2011-12 confirming the levy of penalty u/s.271AAA of the Act. 2. Shri T.Banusekar represented on behalf of the Assessee and Shri AR.V.Sreenivasan represented on behalf of the Revenue. 3. It was submitted by ld.AR that the assessee is an individual, who is a partner in the firm M/s.Swarna Shilpi. The assessee is also manufacturer and trader in Gold jewellery. There was a search and seizure operation on 06.01.2011. In the course of search, the assessee was found with excess Gold jewellery of 27,645 grams. It was a further submission that the assessee had in the course of search admitted an undisclosed income on account i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substantiates the manner in which the income was derived; and (iii) the assessee substantiates the manner in which the undisclosed income was derived; and (iv) the assessee pays the tax, together with interest, if any, in respect of the undisclosed income. It was submitted that the Assessing Officer had taken the view that condition Nos. 2, 3 4 had not been complied with and consequently levy of penalty u/s.271AAA of the Act. The ld.AR drew our attention to the statement recorded u/s.132(4) of the Act which was shown at page-4 of the paper book wherein in reply to Question No.12. The assessee has mentioned as follows:- Q.12. During the course of search seizure opera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income from commission business on various commission businesses. It was submitted that the assessee had categorically explained the manner in which the assessee had derived such income and the same was also substantiated in respect of the source of income and this was also not disputed. It was thus, the submission that Conditions No.2 3 had been complied with. In the return filed, the 4th condition being payment of taxes together with the interest was also complied in so far as the assessee had adopted the rate of ₹ 1,450/- per gram, being the cost at which assessee had acquired the said jewellery. It was a submission that the rate of ₹ 1,850/- was the rate as on the date of search and obviously the undiscl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act for non-levy of penalty u/s.271AAA of the Act that (i) the assessee should have admitted the undisclosed income in a statement recorded u/s.132(4) of the Act in the course of search, (ii) he must specify the manner in which the income has been derived and it should be substantiated, (iii) the manner in which the said undisclosed income was derived should be substantiated and (iv) he should pay tax, together with interest, if any, in respect of the undisclosed income. Admittedly, there is no dispute in respect of the first condition, i.e. that the assessee has admitted the undisclosed income in the statement recorded u/s.132(4) of the Act in the course of search. Answer to Qn. No.13 as has been extracted above clearly shows that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
