Case Law Details
Chetan Hasmukhbhai Vs ACIT (Central) Circle (ITAT Pune)
ITAT Pune held that penalty under section 271AAA of the Income Tax Act leviable as assessee failed to substantiate the source as well as the manner of the undisclosed income.
Facts- These assessees’ twin appeals both dated 19.12.2022 involving proceeding u/s 271AAA of the Income Tax Act.
The assessees’ identical sole substantive grievance that arises for our apt adjudication is correctness of lower authorities action in imposing penalties under Section 271AAA of the Income Tax Act.
Conclusion- We are constrained to conclude that he has very well fallen short of substantiating the manner of having derived his undisclosed income in question i.e., the second limb in sec.271AAA penalty proceedings and therefore, there is hardly any reason for us to disturb both the lower authorities’ findings. The case law quoted at the assessee’s behest supports the Revenue’s case rather wherein their lordships’ hold in identical terms that an assessee has to substantiate the manner after the Authorised Officer puts specific queries to him regarding source and manner of the undisclosed income in issue. We thus affirm CIT(A)’s findings extracted in the penalty proceedings upholding the Assessing Officer’s action imposing the impugned penalties in these twin assessment years.
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