Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 2004-05 - In his return of income, assessee had disclosed certain long-term capital gain on sale of shares of company 'N' - During assessment proceedings, assessee was asked to furnish name of stock exchange through which shares were purchased and sold - Assessee did not furnish required details and finally surrendered sale proceeds of said shares on agreed basis - In meantime, Delhi Stock Exchange, by a letter, informed Assessing Officer that there was no transaction of shares of company 'N' during relevant period - Assessing Officer treated amount surrendered as income from undisclosed source and also levied penalty under section 271(1)(c) on assessee - On appeal, Commissioner (Appeals) and Tribunal deleted penalty holding that disclosure was voluntary - Whether manner in which assessee had tried to prolong case before Assessing Officer by not providing information immediately and narrating incorrect facts while surrendering income showed that assessee had deliberately concealed income and disclosure was not voluntarily but under compulsion being cornered by Assessing Officer - Held, yes - Whether, therefore, Tribunal was not justified in cancelling penalty levied by Assessing Officer - Held, yes FACTS In his return of income for the relevant assessment year, the assessee had disclosed long-term capital gain on sale of shares of company 'N'. During assessment proceedings, the assessee was required to furnish name of stock exchange through which shares were purchased and sold along with the rate of shares of the stock exchange on date of purchase and sale. The assessee did not furnish the required details and, finally surrendered sale proceed of shares on agreed basis. In the meantime, Delhi Stock Exchange had sent letter to the Assessing Officer in which it was mentioned that there was no transaction of shares of company 'N' during the relevant period. In the circumstances, the Assessing Officer treated the amount offered by the assessee as income from undisclosed source under section 69A and also levied penalty under section 271(1)(c) on him. On appeal, the…

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