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2015 (7) TMI 451 - HC - Income TaxPenalty under section 271(1)(c) of the Income Tax Act, 1961 - Held that:- One of the conditions is that the assessee makes a statement under sub-Section (4) of Section 132 that the assets unearthed have been acquired out of his income which has not been disclosed so far in his returns of income already filed. The difficulty arises by the use of the expression “to be furnished before the expiry of time specified in sub-Section (1) of Section 139”. A confusion is likely to arise as to whether the departure has been sought to be made by the legislature only for those cases where the statement as regards undisclosed income was made pertaining to a previous year for which time to file return under Section 139 had not expired. But that was not the intention because the expression “unless” appears after Clauses (a) and (b) of Explanation which provides for imposition of penalty. Therefore, ‘unless’ has to apply to the provision for imposition of penalty. Therefore, the aforesaid expression “to be furnished” has to be interpreted as ‘‘required to be furnished”. Only in that case the Section will make a meaning otherwise the Section does not make any meaning. We are supported in our view by the judgment of the Madras High Court in the case of C.I.T. Vs. SDV Chandru reported in [2003 (12) TMI 40 - MADRAS High Court ] wherein a Division Bench opined that “ The additional words which refer to the time specified in section 139(1) are only a reiteration of the legal requirement regarding the time within which returns should normally be filed.” - Decided against the revenue.
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