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2014 (6) TMI 76 - ITAT JODHPURPenalty u/s 271(1)(c) of the Act – Undisclosed income - Held that:- The assessee derived income from salary, rent, interest and business - in case the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing and thereafter the assessee claims that such assets have been acquired by him by utilizing (wholly or in part) his income which is related to any previous year which has ended before the date of search and the return of income for such previous year has been furnished before the said date but such income has not been declared furnished before the date of search or for such previous year which is to end on or after the date of search and such income is declared by him in his ROI furnished on or after the date of search. The deeming provision about concealment of income or furnishing of inaccurate particulars of such income shall not be applicable when such income or transaction resulting income which are recorded on or before the date of search in the books of account maintained regularly during the course of business or when he makes a declaration in his statement u/s 132(4) of the Act that money etc. found in his possession or under his control was acquired out of his income which has not been disclosed in his ROI to be furnished before the expiry of time specified in section 139(1) and specifies the manner in which the said income has been derived and pays due tax thereon together with interest in respect of such income – Relying upon CIT Vs. Kanhaiyalal Saruparia [2007 (12) TMI 46 - RAJASTHAN HIGH COURT] - thus, a penalty u/s 271(1)(c) of the Act cannot be imposed - The assessee has fulfilled the conditions laid down in Explanation 5 – thus, the order of the Penalty is set aside – Decided in favour of Assessee.
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