The DCIT, Central Circle-1, Surat V. Geeta Prints Pvt. Ltd., Surat

ITA 2093/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85719 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-02-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 25-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Keywords: Income from undisclosed sources
• Section: 143(3); 5(2); 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHRI SHAILENDRA KR. YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, SURAT (APPELLANT) VS M/S. GEETA PRINTS PVT. LTD, PLOT NO. 150 GIDC, PANDESARA, SURAT PAN: AAACG8818R (RESPONDENT) REVENUE BY: SHRI M.K. SINGH, SR. D.R. ASSESSEE BY: NONE DATE OF HEARING : 23-02-2015 DATE OF PRONOUNCEMENT : 26-02- 2015 / ORDER PER : ANIL CHATURVEDI, ACCOUNTANT MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-II, AHMEDABAD DATED 04-07-2011 FOR A.Y. 2008-09. ITA NO. 2093/AHD/2011 ASSESSMENT YEAR 2008-09 I.T.A NO. 2093/AHD/2011 A.Y. 2008-09 PAGE NO DCIT VS. M/S. GEETA PRINTS PVT. LTD 2 2. NONE APPEARED ON BEHALF OF THE ASSESSEE THOUGH N OTICE OF HEARING WAS SERVED ON THE ASSESSEE. WE THEREFORE PROCEED T O DISPOSE OF THE APPEAL EX-PARTE QUA THE ASSESSEE ON THE BASIS OF MA TERIAL ON RECORD. 3. THE FACTS AS CULLED OUT FROM THE MATERIAL ON RE CORD ARE AS UNDER. 4. ASSESSEE IS A COMPANY STATED TO BE ENGAGED IN TH E BUSINESS OF JOBBER OF DYING AND PRINTING OF CLOTH. A SEARCH U /S. 132 OF THE ACT WAS CARRIED AT THE ASSESSEES BUSINESS PREMISES. DURIN G THE COURSE OF SEARCH, ASSESSEE HAD DISCLOSED RS. 2 CRORES ON ACCOUNT OF U NACCOUNTED INCOME FOR FINANCIAL YEAR 2007-08 I.E. ASSESSMENT YEAR 200 8-09 AND WHICH WAS INCLUDED IN THE TOTAL INCOME OF RS. 2,25,57,824/- I N THE RETURN OF INCOME THAT WAS FILED BY THE ASSESSEE ON 26-09-2008. THE A SSESSMENT WAS THEREAFTER FRAMED U/S. 143(3) VIDE ORDER DATED 24-0 4-2009 AND THE INCOME RETURNED BY THE ASSESSEE WAS ACCEPTED WITHOUT ANY A DDITION. ON THE AMOUNT OF RS. 2 CRORES THAT WAS DISCLOSED IN THE RE TURN OF INCOME, PENALTY OF RS. 20,00,000/- WAS LEVIED U/S. 271AAA BY THE AO VIDE ORDER DATED 29- 06-2010. AGGRIEVED BY THE PENALTY LEVIED BY THE AO , ASSESSEE CARRIED THE MATTER BEFORE CIT(A), WHO VIDE ORDER DATED 04-07-20 11 DELETED THE PENALTY BY HOLDING AS UNDER:- 5. I HAVE CONSIDERED THE FACTS OF THE CASE MENTIONED BY THE AO, THE BASIS OF LEVY OF PENALTY, SUBMISSIONS MADE BY L D. AR ON BEHALF OF THE HONOURABLE HIGH COURT'S RELIED UPON. 5.1 THE LD. AR'S ARGUMENT THAT THE INCOME DISC LOSED BY THE ASSESSEE COULD NOT BE COVERED UNDER THE DEFINITION OF 'UNDISCLOSED INCOME' AS DEFINED IN EXPL.(A) TO SECTION 271AAA OF THE ACT, CANNOT BE ACCEPTED BECAUSE THE KEY PERSON OF THE GROUP HIM SELF MADE DISCLOSURE OF UNACCOUNTED INCOME WHILE RECORDING TH E STATEMENT U/S.132(4) OF THE IT ACT. HE HAS ALSO ADMITTE D THAT UNDISCLOSED INCOME WAS INVESTED IN LAND, UNACCOUNTED CASH, JEWELLERY AND RECEIVABLES AND UNDISCLOSED INCOME WAS NOT RECORDED IN THE BOOKS OF ACCOUNTS. THE DISCLOSURE MADE BY THE ASSESSEE FO R UNDISCLOSED I.T.A NO. 2093/AHD/2011 A.Y. 2008-09 PAGE NO DCIT VS. M/S. GEETA PRINTS PVT. LTD 3 INCOME OF RS. 2,00,00,000/-, IS CLEARLY COVERED UND ER THE DEFINITION OF 'UNDISCLOSED INCOME' AS PER EXPL(A) TO SECTION 271A AA OF THE IT ACT. 5.2 ON PERUSAL OF ASSESSMENT ORDER IT IS FOUND THAT THE ASSESSING OFFICER ISSUED NOTICE FOR INITIATING PENA LTY UNDER SECTION 274 R.W.S. 271AAA OF THE INCOME TAX ACT WITHOUT RE CORDING HIS SATISFACTION THAT INCOME OFFERED BY THE ASSESSEE FI RM WAS NOT COVERED UNDER SECTION 271 AAA(2) OF THE ACT AND I A LSO PERUSED THE STATEMENT OF THE ASSESSEE RECORDED UNDER SECTION 13 2 (4) OF INCOME TAX ACT. THE AO HAS LEVIED PENALTY U/S 271 AAA OF THE ACT BECAUSE THE FIRST TWO CONDITIONS OF SECTION 271AAA(2) ARE N OT FULFILLED BY THE APPELLANT. THE THREE CONDITIONS PROVIDED IN SUB SEC TION (2) 271AAA ARE REPRODUCED AS UNDER: (I) IN THE COURSE OF SEARCH, IN A STATEMENT UNDER S UB- SECTION (4) OF SECTION 132, ADMITS THE UNDISCLOSED INCOME AND SPECIFIES THE MANNER IN WHICH SUCH INCOME HAS BEEN DERIVED; (II) SUBSTANTIATES THE MANNER IN WHICH THE UNDISCLO SED INCOME WAS DERIVED AND (II) PAYS THE TAX TOGETHER WITH INTEREST, IF ANY, I N RESPECT OF THE UNDISCLOSED INCOME. CLAUSE (I) LAYS DOWN THE FIRST CONDITION THAT UNDIS CLOSED INCOME SHOULD HAVE BEEN ADMITTED BY THE ASSESSEE IN THE ST ATEMENT U/S 132(4) AND ASSESSEE SHOULD SPECIFY THE MANNER IN WH ICH IT HAS BEEN DERIVED. THE KEY PERSON OF THE GROUP, SHRI JAIPRAKA SH K. ASWANI IN HIS STATEMENT RECORDED U/S 132(4) BEFORE THE OF THE GROUP, BEFORE DEPUTY DIT IN COURSE OF SEARCH ON 19, & 20-02-2008, STATED IN REPLY TO QUESTION NO11, AND DISCLOSED TOTAL INCOME OF RS .20.23 CRORES OUT OF WHICH UNDISCLOSED INCOME OF RS 2.00 CRORES BELON GED TO THE ASAESSEE COMPANY. IN THE SAME QUESTION THE AUTHORIZ ED OFFICER HIMSELF STATED 'IN THESE TRANSACTIONS IT MAINLY APP EARS THAT RECEIPTS OF ON-MONEY FROM VARIOUS RESIDENTIAL PROJECTS BY YO UR GROUP COMPANIES AND FROM TEXTILE BUSINESS,' CLEARLY SPECI FIES THAT THE INCOME IS EARNED FROM TEXTILE BUSINESS. THE KEY PE RSON OF THE GROUP, IN HIS STATEMENT RECORDED U/S 132(4) DISCLOS ED RS.2.00 CRORES ON ACCOUNT OF NET INCOME FROM TEXTILE BUSINESS. F URTHER, SHRI ASHOK K ASWANI IN A STATEMENT ON 6.5.2008 IN REPLY TO QUE STION NUMBER 3 STATED THAT ENTRIES MADE IN POCKET DIARY WERE RELAT ED TO FY 2007 08 . THE ENTRIES RELATED TO GEETA PRINTS PVT LTD IN WHI CH HE HIMSELF AND HIS SON WERE DIRECTORS. HE FURTHER EXPLAINED TH AT THE FIGURES MIGHT NOT HAVE BEEN REFLECTED IN THE REGULAR BOOKS OF THE GEETA PRINTS PVT LTD AND CONSIDERING THAT HIS BROTHER SHR I JAYPRAKASH K ASWANI MADE DISCLOSURE OF RS. 2 CRORES AS UNACCOUNT ED INCOME OF THE COMPANY. HE ALSO HAD CONFIRMED THE THE DISCLOSU RE MADE BY THE I.T.A NO. 2093/AHD/2011 A.Y. 2008-09 PAGE NO DCIT VS. M/S. GEETA PRINTS PVT. LTD 4 KEY PERSON OF THE GROUP SHRI JAYPRAKASH K ASWANI. S O ASSESSEE SPECIFIED THE MANNER IN WHICH UNDISCLOSED INCOME WA S EARNED AS THE ASSESSEE COMPANY WAS HAVING BUSINESS OF DYEING AND PRINTING OF TEXTILE. CLAUSE (II) LAYS DOWN THE SECOND CONDITION THAT ASS ESSEE SHOULD SUBSTANTIATE THE MANNER IN WHICH UNDISCLOSED INCOME HAS BEEN DERIVED. THE KEY PERSON OF THE GROUP SHRI JAIPRAKAS H K. ASWANI, IN HIS STATEMENT RECORDED U/S 132(4) ON 19 & 20.2.2008 , IN REPLY TO QUESTION NO. 11, MADE DISCLOSURE OF TOTAI INCOME OF RS.20.23 CRORES AND HAS PROVIDED BIFURCATION OF UNDISCLOSED INCOME IN DIFFERENT HANDS AND MADE DISCLOSURE OF RS.2.00 CRORES IN THE HANDS OF THE ASSESSEE COMPANY. IN THE SAME QUESTION THE AUTHORIZ ED OFFICER MENTIONED THAT IT WAS ESTABLISHED THAT THE ASSESSEE EARNED INCOME FROM ON MONEY RECEIVED FROM BOOKING OF RESIDENTIAL PROPERTIES AND TEXTILE BUSINESS AND SUBSTANTIATED THE MANNER IN WH ICH UNACCOUNTED INCOME WAS EARNED. THE DIRECTOR OF THE COMPANY SHRI ASHOK K ASWANI ALSO CONFIRMED THE DISCLOSURE MADE BY SHRI J AIPRAKASH K ASWANI. 5.3 THE PRINCIPLES LAID DOWN BY THE HON'BLE HIGH CO URTS IN THE CASES OF CIT V. MAHENDRA C. SHAH [2008] 299 ITR 305 (GUJ . ) AND SECOND CIT V. RADHA KRISHNA GOEL [2005] 278 ITR 454/[2006] 152 TAXMAN 29O (AIL), ARE ALSO SQUARELY APPLICABLE TO THE FACT S AND CIRCUMSTANCES OF THE APPELLANT'S CASE. IN THE CASE OF CIT V MAHENDRA C. SHAH, HON'BLE JURISDICTIONAL HIGH COURT HAS OBSERVED THAT WHEN THE STATEMENT IS BEING RECORDED BY THE AU THORIZED OFFICER, IT IS INCUMBENT UPON THE AUTHORIZED OFFICER TO EXPL AIN THE PROVISION OF EXPLANATION 5 IN ENTIRELY TO THE ASSESAEE CONCERNED AND THE AUTHORIZED OFFICER CANNOT STOP SHORT AT A PARTICULA R STAGE SO AS TO PERMIT THE REVENUE TO TAKE ADVANTAGE OF SUCH LAPSE IN THE STATEMENT. THE REASON IS NOT FAR TO SEEK. IN THE FIRST INSTANC E, THE STATEMENT IS BEING RECORDED IN THE QUESTION AND ANSWER FORM AND THERE WOULD BE NO OCCASION FOR AN AASESSEE TO STATE AND MAKE AVERM ENTS IN THE EXACT FORMAT STIPULATED BY THE PROVISIONS CONSIDERI NG THE SETTING IN WHICH SUCH STATEMENT IS BEING RECORDED. SECONDLY, C ONSIDERING THE SOCIAL ENVIRONMENT IT IS NOT POSSIBLE TO EXPECT FRO M AN ASSESSEE , WHETHER LITERATE OR ILLITERATE, TO BE SPECIFIC AND TO THE POINT REGARDING THE CONDITIONS STIPULATED BY THE SECOND EXCEPTION W HILE MAKING STATEMENT UNDER SECTION 132(4). EVEN IF THE STATEME NT DOES NOT SPECIFY THE MANNER IN WHICH THE INCOME IS DERIVED, IF THE INCOME IS DECLARED AND TAX THEREON PAID, THERE WOULD BE SUBST ANTIAL COMPLIANCE NOT WARRANTING ANY FURTHER DENIAL OF THE BENEFIT. I.T.A NO. 2093/AHD/2011 A.Y. 2008-09 PAGE NO DCIT VS. M/S. GEETA PRINTS PVT. LTD 5 IN THE CASE OF CIT V. RADHA KRISHNA GOEL [2005] 278 ITR 454, THE HON'BLE ALLAHABAD HIGH COURT GAVE SIMILAR FINDINGS AND LAID DOWN SIMILAR PRINCIPLES AS UNDER:- '.. FROM A PERUSAL EXPLANATION 5, IT IS EVIDENT THA T THE CIRCUMSTANCES WHICH OTHERWISE DID NOT ATTRACT THE PENALTY PROVISI ONS OF SECTION 271(1)(C), NOW BY A DEEMING PROVISION ATTRACT PENAL TY PROVISIONS. BUT AN EXCEPTION IS PROVIDED IN CLAUSE (2) OF EXPLANATI ON 5 WHERE THE DEEMING PROVISION WILL NOT APPLY IF DURING THE COUR SE OF SEARCH THE ASSESSEE MAKES THE STATEMENT UNDER SUB-SECTION (4) OF SECTION 132 THAT THE MONEY, BULLION, JEWELLERY ETC. FOUND IN HI S POSSESSION HAS BEEN ACQUIRED OUT OF HIS INCOME WHICH HAS NOT BEEN DISCLOSED SO FAR IN HIS RETURN OF INCOMES AND ALSO SPECIFIES IN THE STATEMENT THE MANNER IN WHICH SUCH INCOME HAS BEEN DERIVED AND PA YS THE TAX TOGETHER WITH INTEREST, IF ANY, IN RESPECT OF SUCH INCOME....UNDER SECTION 132(4) OF THE ACT, UNLESS THE AUTHORIZED O FFICER PUTS A SPECIFIC QUESTION WITH REGARD TO THE MANNER IN WHIC H INCOME HAS BEEN DERIVED, IT IS NOT EXPECTED FROM THE PERSON TO MAKE A STATEMENT IN THIS REGARD AND IN CASE IN THE STATEMENT THE MAN NER IN WHICH INCOME HAS BEEN DERIVED HAS NOT BEEN STATED BUT HAS BEEN STATED SUBSEQUENTLY, IT AMOUNTS TO COMPLIANCE WITH EXPLANA TION 5(2). IF THERE IS NOTHING TO THE CONTRARY IN THE STATEMENT R ECORDED UNDER SECTION 132(4) OF THE ACT, IN THE ABSENCE OF ANY SP ECIFIC STATEMENT ABOUT THE MANNER IN WHICH SUCH INCOME HAS BEEN DERI VED, IT CAN BE INFERRED THAT SUCH UNDISCLOSED INCOME WAS DERIVED F ROM THE BUSINESS WHICH HE WAS CARRYING ON. THE OBJECT OF TH E PROVISION IS ACHIEVED BY MAKING THE STATEMENT ADMITTING THE NON- DISCLOSURE OF MONEY, BULLION, JEWELLERY, ETC. THUS, MUCH IMPORTAN CE SHOULD NOT BE ATTACHED TO THE STATEMENT ABOUT THE MANNER IN WHICH SUCH INCOME HAS BEEN DERIVED, IT CAN BE INFERRED ON THE FACTS A ND CIRCUMSTANCES OF THE CASE, IN THE ABSENCE OF ANYTHING TO THE CONT RARY. THEREFORE, MERE NON-STATEMENT OF THE MANNER IN WHICH SUCH INCO ME WAS DERIVED WOULD NOT MAKE EXPLANATION 5(2) INAPPLICABL E.'(P.454).' 5.4 AFTER GOING THROUGH THE STATEMENT RECORDED UND ER SECTION 132 (4) OF THE IT ACT AND THE PRINCIPLES LAID DOWN BY T HE HONOURABLE GUJRAT HIGH COURT AND ALLAHABAD HIGH COURT, IT IS H ELD THAT THE AO HAS WRONGLY REJECTED THE ASSESSEE'S ARGUMENTS ON TH E GROUND THAT THE DECISION WAS RENDERED IN REFERENCE TO EXPLANATI ON 5 OF SECTION 271(1)(C) AND NOT WITH REGARD TO THE SECTION 271AAA AND THESE WERE NOT APPLICABLE. THE HONOURABLE COURTS HAVE LAID DOW N THE PRINCIPLE THAT THE AUTHORIZED OFFICER IS TO EXPLAIN THE PROVI SION TO THE ASSESSEE AND ASK THE RELEVANT QUESTIONS ON THE MANNER IN WHI CH THE UNDISCLOSED INCOME WAS EARNED AND IN THE PRESENT CA SE IT IS I.T.A NO. 2093/AHD/2011 A.Y. 2008-09 PAGE NO DCIT VS. M/S. GEETA PRINTS PVT. LTD 6 APPLICABLE FOR SECTION 271AAA INSTEAD OF EXPLANATIO N 5 OF SECTION 271(1). IN THE WHOLE, STATEMENT RECORDED UNDER SEC TION 132(4) ON 19 & 20.2 . 2008 THE AUTHORIZED OFFICER HAS NOT ASKED ANY FURTH ER QUESTION BUT WAS SATISFIED WITH THE MANNER THE INCO ME WAS EARNED BY THE ASSESSEE. CLAUSE (III) LAYS DOWN THE THIRD CONDITION REGARDIN G THE PAYMENT OF TAX ALONG WITH INTEREST ON UNDISCLOSED INCOME ADMIT TED IN THE COURSE OF SEARCH. IT IS UNDISPUTED FACT THAT THE TAX AN D INTEREST HAD BEEN PAID BY THE ASSESSEE. THE ASSESSING OFFICER HIMSEL F STATED THE SAME IN THE PENALTY ORDER. THE ASSESSEE HAS MADE DISCLOSURE OF UNACCOUNTED INC OME WHILE RECORDING STATEMENT UNDER SECTION 132(4) OF THE INC OME TAX ACT AND PAID THE TAXES WITH INTEREST. THE DISCLOSURE WAS NE ITHER MADE AGAINST ANY MONEY, BULLION, JEWELLERY OR OTHER VALU ABLE ARTICLES OR THINGS FOUND DURING THE COURSE OF SEARCH NOR MADE A GAINST ANY ENTRY IN THE BOOKS OF ACCOUNTS OR OTHER DOCUMENTS OR TRAN SACTIONS FOUND IN THE COURSE OF SEARCH BECAUSE NO SUCH ASSETS OR TRAN SACTIONS WERE FOUND DURING THE COURSE OF SEARCH. THE DISCLOSURE OF UNACCOUNTED INCOME IN THE ENTIRE GROUP WAS MADE IN THE STATEMEN T OF KEY PERSON OF THE GROUP, SHRI JAIPRAKASH K. ASWANI RECORDED U/ S. 132(4) ON THE GROUND OF ON MONEY COLLECTED ON BOOKING OF RESIDENT IAL PROPERTIES IN THEIR PROJECTS AND FROM THE TEXTILE BUSINESS. IN THIS CASE THE DISCLOSURE MADE BY SHRI JAYPRAKASH K ASWANI WAS ALS O CONFIRMED BY SHRI ASHOK K ASWANI THE DIRECTOR OF THE COMPANY. THE TAXES ARE PAID WITH INTEREST. 'IN VIEW OF THE ABOVE CIRCUMSTANCES AND ON THE BASI S OF PRINCIPLE LAID DOWN BY THE HONOURABLE JURISDICTIONAL HIGH COURT AND BY THE ALLAHABAD HIGH COURT IN THE ABOVE CITED DECISIONS THE ASSESSEE CAN BE SAID TO HAVE SUBSTANTIALLY DISCHARGED THE ONUS O F EXPLAINING AND SUBSTANTIATING THE MANNER OF EARNING UNDISCLOSED IN COME BECAUSE THE ASSESSING OFFICER MADE ASSESSMENT OF DISCLOSURE MADE BY ASSESSEE ON THE BASIS OF ACTUAL INCOME AND NOT ON T HE BASIS OF THE INVESTMENT/EXPENDITURE UNDER THE VARIOUS DEEMING PR OVISIONS. MOREOVER, THE ASSESSING OFFICER IN THE ASSESSMENT O RDER PASSED U/S.143(3) OF THE ACT, ACCEPTED THE DISCLOSED INCOM E: DECLARED BY THE ASSESSEE IN THE RETURNED INCOME INCLUDING DISCL OSURE AMOUNT OF RS.2,00,00,000/- MADE DURING SEARCH WHILE RECORDING STATEMENT U/S. 132(4) OF THE ACT. THE A.O. HAS NOT MADE ANY COMMEN T OR OBSERVATION ABOUT THE SOURCE AND NATURE OF INCOME, MANNER IN WHICH INCOME WAS DERIVED OR SUBSTANTIATING THE MANNER. TH E ASSESSING OFFICER HAS NOT MADE ANY ADDITION OF UNDISCLOSED IN COME IN ADDITION TO THE DISCLOSURE MADE BY THE ASSESSEE AND THE INCO ME OFFERED IN I.T.A NO. 2093/AHD/2011 A.Y. 2008-09 PAGE NO DCIT VS. M/S. GEETA PRINTS PVT. LTD 7 THE RETURN FILED. HE HAS ALSO NOT RECORDED ANY SATI SFACTION OR ANY ADDITION OF UNDISCLOSED INCOME IN ADDITION TO THE D ISCLOSURE MADE BY THE ASSESSEE AND THE INCOME OFFERED IN THE RETURN F ILED. HE HAS ALSO NOT RECORDED ANY SATISFACTION OR ANY REASON FOR INI TIATING THE PENALTY UNDER SECTION 271AAA OF THE ACT. THIS SHOWS THAT T HE A.O. HIMSELF WAS SATISFIED ABOUT THE DISCLOSED INCOME OFFERED IN THE RETURN OF INCOME AS UNDISCLOSED INCOME AND THE MANNER IN WHIC H THE INCOME WAS DERIVED. IN VIEW OF THESE FACTS AND CIRCUMSTANCES OF THE CAS E AND THE PRINCIPLES LAID DOWN IN THE DECISIONS BY THE HON'BL E HIGH COURTS NARRATED ABOVE IN PARAS 4.1 AND 5.3 OF THIS ORDER, IT IS HELD THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED OF THE ACT AND HENCE THE SAME IS DELETED. 5. AGGRIEVED BY THE AFORESAID ORDER OF CIT(A), REVE NUE IS NOW IN APPEAL AND HAS RAISED THE FOLLOWING GROUNDS:- 1 THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY LEVIED U/S. 271AAA OF RS. 20,00,000/- EVEN THOUGH THE ASSESSEE FAILED TO FULFILL THE CONDITIONS PRESCRIBE D U/S. 271AAA(2) OF THE ACT. 6. BEFORE US, LD DR POINTED TO THE VARIOUS OBSERVAT IONS MADE BY THE AO IN THE PENALTY ORDER AND SUPPORTED THE ORDER OF AO. 7. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. WE FIND THAT CIT(A) WHILE DELETING THE PEN ALTY HAS NOTED THAT THE CONDITIONS PROVIDED U/S. 271AAA(2) ARE REQUIRED TO BE FULFILLED SO AS TO GRANT IMMUNITY TO THE ASSSESSEE FROM PENALTY. HE H AS FURTHER NOTED THAT ALL THE THREE CONDITIONS HAVE BEEN FULFILLED BY THE ASSESSEE AND FURTHER RELYING ON THE DECISION OF HONBLE GUJARAT HIGH COU RT IN THE CASE OF CIT VS. MAHENDRA C SHAH (2000) 299 ITR 305 (GUJARAT) AND CI T VS. RADHA KRISHNA GOEL (2005) 278 ITR 454 HAD HELD THAT ASSES SEE HAD MADE DISCLOSURE OF UNACCOUNTED INCOME WHILE RECORDING ST ATEMENTS U/S. 132(4) OF THE ACT AND HAD ALSO PAID THE TAX WITH INTEREST. HE HAS FURTHER GIVEN A I.T.A NO. 2093/AHD/2011 A.Y. 2008-09 PAGE NO DCIT VS. M/S. GEETA PRINTS PVT. LTD 8 FINDING THAT THE AO IN THE ASSESSMENT ORDER PASSED U/S. 143(3) OF THE ACT HAD ACCEPTED THE DISCLOSED INCOME DECLARED BY THE A SSESSEE AND NO ADDITION ON ACCOUNT OF UNDISCLOSED INCOME HAS BEEN MADE BY THE AO. HE HAS FURTHER GIVEN A FINDING THAT AO WAS SATISFIED A BOUT THE DISCLOSED INCOME OFFERED IN THE RETURN OF INCOME AND THE MANN ER IN WHICH THE INCOME WAS DERIVED. WE THUS FIND THAT LD. CIT(A) BY A DETA ILED AND REASONED ORDER DELETED THE PENALTY. BEFORE US, REVENUE HAS N OT BROUGHT ANY MATERIAL ON RECORD TO CONTROVERT THE FINDINGS OF TH E CIT(A) OR HOW THE RATIO OF DECISIONS RELIED BY LD. CIT(A) NOT APPLICABLE TO THE PRESENT FACTS. IN VIEW OF THE AFORESAID FACTS, WE FIND NO REASON TO INTERF ERE WITH THE ORDER OF LD. CIT(A) AND THUS THIS GROUND OF REVENUE IS DISMISSED . 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (SHAILENDRA KR. YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 26/02/2015 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,