TMI Blog2002 (4) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 1982-83 the ld. CIT(A) has erred in reducing the penalty of Rs. 81,375 imposed under section 271(1)( c ) to Rs. 14,600 without adequate justification. There are common grounds of appeal. Therefore, these two appeals are being decided through a consolidated order for the sake of convenience. 2. The brief facts of the case are that a search was conducted in this case under section 132 of the Income-tax Act for assessment year 1981-82. The assessee filed its return of income on 6-10-1982 declaring the income as under : 1. Routine business income net : Rs. 8,000 2. Income surrendered under section 132(12) - Silver : Rs. 70,000 Cash credit of Kus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnishing of inaccurate particulars or concealment of income. In the present case since the return of income has been filed after the search seizure operation and including the major portion of the income assessed subsequently that there can be no substantive concealment on the part of the assessee. Therefore, the ld. CIT(A) came to the conclusion that there is only concealment of income amounting to Rs. 30,020 (Rs. 1,42,320 minus Rs. 1,12,300). Similarly for assessment year 1982-83 it was found during the course of search that the following items were not reflected in the books of account relating to this assessment year : ( i )Investment in Silver Refinery : Rs. 74,5 ( ii )Unexplained cash : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncealing the particulars of income or for furnishing of inaccurate particulars in the return of income filed by the assessee. 5. This situation of penalty not imposable in case all the particulars of income are disclosed in the return of income had been taken care of by inserting Explanation 5 to section 271(1)( c ) of the Act w.e.f. 1-10-1984. Hence, penalty under section 271(1)( c ) can be levied only for the income which has not been disclosed in the return of income. Therefore, the CIT(A) has rightly reduced the penalty to Rs. 19,810 for assessment year 1981-82 and to Rs. 14,600 for assessment year 1982-83. We decline to interfere with the orders of the CIT(A) for both the years under appeal. 6. In the result, both the appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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