IT: Where Assessing Officer having completed assessment, passed a penalty order under section 271AAA for default of not substantiating manner in which undisclosed income was derived, in view of fact that assessee made statement that he had earned undisclosed income for various transactions of sale/purchase of land which did not face any rebuttal and, moreover, assessee had paid due tax on said income, impugned penalty order deserved to be set aside
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[2014] 48 taxmann.com 327 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'F'
Sita Ram Gupta
v.
Assistant Commissioner of Income-tax, Central Circle-I, Faridabad*
A.D.JAIN, JUDICIAL MEMBER
AND J.S. REDDY, ACCOUNTANT MEMBER
IT APPEAL NOS. 1835 & 1836 (DELHI) OF 2013
STAY APPLICATION NO. 433 (DELHI) OF 2013
[ASSESSMENT YEAR 2009-10]
JUNE 30, 2014
Section 271AAA of the Income-tax Act, 1961 - Penalty - Where search has been initiated (Applicability of) - Assessment year 2009-10 - In course of search proceedings carried out in case of assessee, cash was found at different places belonging to him - In statement recorded under section 132(4), assessee admitted that said cash represented undisclosed income - Assessing Officer having completed assessment, passed a penalty order under section 271AAA for default of not substantiating manner in which undisclosed income was derived - It was noted from records that assessee made statement that he had earned undisclosed income from various transactions of sale/purchase of land and said statement did not face any rebuttal or rejection at hands of Assessing Officer - It was also undisputed that assessee had paid due tax on admitted undisclosed income - Whether on facts, impugned penalty order passed by authorities below deserved to be set aside - Held, yes [Para 21] [In favour of assessee]
■■■
[2014] 48 taxmann.com 327 (Delhi - Trib.)
IN THE ITAT DELHI BENCH 'F'
Sita Ram Gupta
v.
Assistant Commissioner of Income-tax, Central Circle-I, Faridabad*
A.D.JAIN, JUDICIAL MEMBER
AND J.S. REDDY, ACCOUNTANT MEMBER
IT APPEAL NOS. 1835 & 1836 (DELHI) OF 2013
STAY APPLICATION NO. 433 (DELHI) OF 2013
[ASSESSMENT YEAR 2009-10]
JUNE 30, 2014
Section 271AAA of the Income-tax Act, 1961 - Penalty - Where search has been initiated (Applicability of) - Assessment year 2009-10 - In course of search proceedings carried out in case of assessee, cash was found at different places belonging to him - In statement recorded under section 132(4), assessee admitted that said cash represented undisclosed income - Assessing Officer having completed assessment, passed a penalty order under section 271AAA for default of not substantiating manner in which undisclosed income was derived - It was noted from records that assessee made statement that he had earned undisclosed income from various transactions of sale/purchase of land and said statement did not face any rebuttal or rejection at hands of Assessing Officer - It was also undisputed that assessee had paid due tax on admitted undisclosed income - Whether on facts, impugned penalty order passed by authorities below deserved to be set aside - Held, yes [Para 21] [In favour of assessee]