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TMI Blog2022 (2) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... n to Section 271 AAA of the Act asking him to specify the manner in which the undisclosed income, surrendered during the course of search, had been derived, the jurisdictional requirement of Section 271AAA was not met the penalty is not leviable. Even Hon‟ble Gujarat High Court in the case of CIT vs. Mahendra C shah [ 2008 (2) TMI 32 - GUJARAT HIGH COURT] and case of Radha Kishan Geol [ 2005 (4) TMI 47 - ALLAHABAD HIGH COURT] dealt with the identical situation and deleted the penalty. We are inclined to delete the penalty imposed by the AO and confirmed by the ld.CIT(A) u/s 271AAA - Decided in favour of assessee. - ITA No. 7470/Del/2017 - - - Dated:- 27-1-2022 - SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI N. K. CHOU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not find favour from the AO and the AO made the addition of ₹ 13 lakhs u/s 69A of the Act. Simultaneously, also initiated penalty u/s 271AAA of the Act by issuing notices dated 27.02.2015 and 08.04.2015 u/s 274 read with section 271AAA of the Act. 3. The Assessee challenged the said addition also before the ld CIT(A), who vide order dated 23.10.2015 confirmed the addition to the tune of ₹ 6,60,000/- out of addition of ₹ 13 lakhs. Thereafter, fresh show cause notices dated 20.01.2016 and 24.03.2017 have been issued to the Assessee for penalty proceedings u/s 271(1) of the Act. Though, the Assessee replied the said show cause notices by submitting that the addition of ₹ 10,59,987/- (including amount of ₹ 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 400/2017 decided on 18.07.2017,the penalty is unsustainable. There is no denial from the ld. DR to the facts contended by the Assessee. 6. We have given thoughtful consideration to the facts and circumstances of the case and on the statements of the Assessee and her husband recorded by the AO, nothing appears qua putting an specific query by referring the provisions of section 271AAA of the Act and drawing the attention of the Assessee to the same while asking her to specify the manner in which the undisclosed income had been derived, hence as per judgment of jurisdictional High Court in the case of Pr. Commissioner of Income Tax (Central)-1 Versus M/s Emirates Technologies Pvt. Ltd. (supra) wherein it has been affirmed when no specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tipulated by the provisions considering the setting in which such statement is being recorded, as noted by the Allahabad High Court in the case of CIT vs. RadhaKishanGoel : (2005) 278 ITR 454. Secondly, considering the illiterate, to be specific and to the point regarding the conditions stipulated by exception No. 2 while making statement under Section 132(4) of the Income Tax Act, 1961. The view taken by the Tribunal as well as the Allahabad High Court to the effect that even if the statement does not specify the manner in which the income is derived, if the income is declared and tax thereon paid, there would be substantial compliance not warranting any further denial of the benefit under exception No. 2 in Explanation 5 is commendable. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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