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2014 (5) TMI 546 - AT - Income TaxPenalty u/s 271(1)(c) of the Act –Search and seizure - Unexplained entries - Held that:- The assessee has surrendered Rs. 82,22,450/- u/s. 153A on account of cash found in lockers and unexplained entries in diaries - This was done during the course of search and seizure operation, where some books, documents, cash were found and impounded during the course of search – The findings of the CIT(A) is upheld that it was only due to incriminating documents found / seized in the search action that persuaded the assessee to make a clear cut declaration u/s 132(4) - some pages of the diaries entries were also found to be incorrect and to that extent were added back by the AO and the assessee has conceded to the same - the assessee’s claim that no penalty is leviable when unproved income is offered for taxation to purchase peace is not at all sustainable - section 271(1)(c) postulates imposition of penalty for furnishing of inaccurate particulars and concealment of income. Assessee has been clearly been guilty of concealment and the same came to the light only during search operation where diaries and documents were seized - Explanation 5A to Section 271(1)(c) clearly covers the situation - the income declared by the assessee in his return of income furnished after the date of search was solely on the basis of cash found during the search and entries in documents and diaries seized - There is no cogent explanation as to why these incomes were not disclosed earlier in the respective assessment year - assessee is clearly liable for levy of penalty u/s. 271(1)(c) of the Act – the order of the CIT(A) is upheld – Decided against Assessee.
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