2005 (4) TMI 47 - HC - Income Tax

"Whether Tribunal was justified in holding that the conditions laid down in Explanation 5(2) to section 271(1)(c) were fulfilled and no penalty was leviable under section 271(1)(c)?" - we are of the view that under section 132(4) of the Act unless the authorised officer puts a specific question with regard to the manner in which 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 manner in which income has been derived has not been stated but has been stated subsequently, that amounts to the compliance with Explanation 5(2) - we are of the opinion that much importance should not be attached to the statement about the manner in which such income has been derived. - Therefore, mere non-statement of the manner in which such income was derived would not make Explanation 5(2) inapplicable. - Held that there is no error in the order of the Tribunal and the same is upheld.