Section 19 - Amendment of section 271 - Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986

19. Amendment of section 271. In section 271 of the Income-tax Act, in sub-section (1),- (a) the words without reasonable cause , wherever they occur, shall be omitted; (b) in Explanation 1,- (i) in clause (B), for the words not able to substantiate, , the words not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, shall be substituted; (ii) the proviso shall be omitted; (c) in Explanation 5, for the portion beginning with the words unless such income is and ending with the words before the said date , the following shall be substituted, namely :- unless,- (1) such income is, or the transactions resulting in such Income are recorded,- (i) in a case falling under clause (a), before the date of the search; and (ii) in a case falling under clause (b), on or before such date, in the books of account, if any, maintained by him for any source of income or such income is otherwise disclosed to the Commissioner before the said date; or (2) he, in the course of the search, makes a statement under sub-section (4) of section 132 that any money, bullion, jewellery or other valuable article or thing found in his possession or under his control, has been acquired out of his income which has not been disclosed so far in his return of income to be furnished before the expiry of time specified in clause (a) or clause (b) of sub-section (1) of section 139, and also specifies in the statement the manner in which such income has been derived and pays the tax, together with interest if any, in respect of such income. .