TMI Blog2015 (7) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... as 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 add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether on the facts and circumstances of the case, the learned Tribunal was justified in law in confirming the order of the CIT (A) in deleting the penalty levied under section 271(1)(c) of the Income Tax Act, 1961 on the ground that the assessee is entitled to immunity from penalty on account of Explanation 5 to Section 271(1) when the assessee s case does not come under the purview of the exceptions provided therein . Mr. Poddar, learned senior advocate appearing for the assessee has drawn our attention to an unreported judgment of this Court to which one of us( G.C.Gupta,J.) was a party in ITA No. 39 of 2010, wherein this Court held as follows : We have considered the rival submissions advanced by the learned advocates appearing b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 264 ITR 249) and Madras High Court judgment in the case of CIT v. Chandru (266 ITR 175) and Rajasthan High Court judgment in the case of Gebilal Kanhailal vs. ACIT (270 ITR 523) have held that penalty is not leviable. No further requirements are specified in the language of law. Under the circumstances and respectfully following the orders of the authorities cited above, the order of penalty is cancelled and the appeal is allowed . Mr. Sinha, learned advocate appearing for the revenue did not dispute the fact that the assessee duly satisfied the conditions. However, for the sake of clarity, some cloud is required to be dispersed. Explanation-5 to Section 271(1) of the Income Tax Act reads as follows: Explanation 5.- Where in the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner]] before the said date;or (2) he, in course of the search, makes a statement under subsection( 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 [***] subsection (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. Clause (a) contemplates income for any previous year for which returns has been furnished but the income since disclosed had not been shown. It is axiomatic th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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