INCOME TAX ACT, 1961

Section 271AAA

Penalty under section 271AAA - Leviability - Assessee having substantiated the manner in which undisclosed income was derived - No further question asked by AO

During search assessee admitted undisclosed income of Rs. 15,00,00,000 as unaccounted cash receivable. AO levied penalty under section 271AAA on the ground that assessee had failed to substantiate the offered income of Rs. 1,50,00,000 and the manner in which income was derived.Held: As evident, the manner in which undisclosed income derived had been clearly specified in statement made by Director of assessee-company. He had disclosed details of cash transaction towards booking/selling of RTU wings of RKTM Market. The selling after construction work was done by M/s. Krish Corporation. he has also stated details of booking in cash of Patdi Commercial & Investment of RKT Market which related to financial year 2010-11. Thereafter, it could not be blamed that assessee had not substantiated the manner in which disclosed income was derived. If there was any doubt in the mind of revenue, it should have asked further question about which was not done. Accordingly, there has been 'sufficient compliance' of requirement of section 271AAA(2)(i) and (ii) on assessee's part and, therefore, no penalty was leviable under section 271AAA.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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