Law:

Section:

I. Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1989-90 - Where surrender of amount following search and seizure related to stock was covered under Explanation 5 to section 271(1)(c), penalty was not leviable [In favour of assessee] Search and seizure operation was carried at the business premises of the assessee and residential premises of the partners. The assessee made disclosure statement under section 132(4) whereby a surrender of Rs. 3,25,000 was made relating to assessment year 1989-90. Out of Rs. 3.25 lakhs a sum of Rs. 2,00,000 was declared on account of stocks not entered in the books of account whereas balance of Rs. 1,25,000 reflected other undisclosed income of the assessee. However, this disclosure was included in the return of income filed for the assessment year in question. The Assessing Officer completed the assessment and also imposed penalty on the assessee. The Commissioner (Appeals) deleted the penalty and same was upheld by the Tribunal. Held that the Tribunal while upholding deletion of penalty on surrender of Rs. 2,00,000 had categorically recorded that the surrender related to the stock which was included under the definition of other valuable articles or things and that the conditions enumerated underExplanation 5 to section 271(1)(c) were fulfilled. It was also not disputed that the statement of the assessee was recorded under section 132(4) on the date of search. Therefore, the Tribunal was right in upholding order of the Commissioner (Appeals) cancelling penalty of Rs. 2,00,000. II. Section 271A of the Income-tax Act, 1961 - Penalty - For failure to keep, maintain or retain books of account, etc. - Assessment year 1989-90 - Where time for filing return of income for relevant assessment year had not expired on date of search and assessee had disclosed amount in question in return and paid all taxes, penalty could not be levied under section 271(1)(c) in respect of said amount [In favour of assessee] Search and seizure operation was carried at the business premises of the assessee and residential premises of the partners. The assessee made disclosure statement under section…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492