Section 271AAA(2) nowhere mandates offering of undisclosed income in return of income

DCIT Vs. Shri Suresh Karmakar (ITAT Kolkata)

Income declared cannot be called retraced if same was included in 2nd revised return but not in Original and First Revise Return further Sec. 271AAA(2) not mandates offering of undisclosed income in return of income.

We find that the assessee had satisfied all the three conditions prescribed in 271AAA(2) of the Act. The assessee had even though retracted the 132(4) statement by not offering the undisclosed income in the original return of income and in the first revised return of income, but had voluntarily offered the undisclosed income in the second revised return of income filed on 01.11.2011 (which is within the time limit prescribed u/s 139(5) of the Act). It is not in dispute that the Ld. AO had taken due cognizance of the second revised return of income filed by the assessee, while completing the assessment for the assessment year 2010-11. While this is so, it cannot be said that the assessee had not offered the undisclosed income in the return filed before the Ld. AO. This cannot be treated as a retraction by the assessee from his disclosure statement. Moreover, we find that Section 271AAA(2) nowhere mandates requirement of offering the undisclosed income in the return of income to be filed by the assessee. For the sake of convenience the provision of 271AAA(2) are reproduced here under. :