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2018 (12) TMI 330 - HC - Income TaxPenalty u/s 271(1)(c) - penalty originally levied was 200%, which was reduced to 100% by the Appellate Tribunal - unexplained income - returns filed subsequent to the search - Failure on the part of the assessee to file the returns voluntarily - Held that:- Admittedly there was unexplained income as discernible from the records maintained by the assessee revealed on search and subjected to seizure. Admittedly, there was no explanation offered by the assessee as to the non-filing of the income tax return. Under such circumstances, we are of the opinion that the returns filed subsequent to the search would not absolve the penal provisions under Section 271(1)(c). Failure on the part of the assessee to file the returns voluntarily, as statutorily prescribed, would be a culpable act or omission attracting penalty under Section 271(1)(c). It was only subsequent to the search that the assessee filed returns and this reveals the intention of the assessee to avoid payment of tax; if the search had not been taken out. There is also clear evidence of attempt to evade payment of tax on rental income, which is received by his wife for property belonging to him. The fact regarding the sale of the property in variance with the consideration mentioned in the agreement is also evidence of intention to evade payment of tax - Decided in favour of the Revenue and against the assessee
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