Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1676 - AT - Income TaxLevy of penalty u/s 271(1)(c) - investments surrendered after detection of concealment by the Department by way of search u/s 132 - Held that:- The surrender was never retracted by the assessee. Nothing to this effect is recorded in the orders of the authorities below nor has been brought to our notice during the course of hearing before us. As per the assessee own admission, he had not disclosed income to the tune of ₹ 28lacs earned during the year. Then subsequently during assessment proceedings the assessee claims /admits to have invested this income in two properties. What this tantamounts to is that the surrender made by the assessee was on account of undisclosed income for the year, invested in assets. And since the assessee had suo moto made the surrender it tantmounted to the assessee himself coming clean before the Revenue about the fact of earning such income and investing it in assets. Thus at the point of time when the surrender was made by the assessee during search the Revenue for all purposes had found the assessee to be the owner of assets acquired out of earlier undisclosed income during search. After the suo moto disclosure by the assessee no requirement remained for the Revenue to make any further discovery at all. The requirement of Explanation 5A of the assessee being found during search to be the owner of assets acquired out of earlier undisclosed income is therefore met. The contention of the assessee that no incriminating material was found during search, we hold, has been rightly dismissed by the CIT(A). - decided against assessee.
|