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2018 (2) TMI 979

Penalty u/s 271(1)(c) - concealment of income on the amount offered in the returns filed under section 153 (A) - undisclosed income - Held that:- We find that all the three conditions in the present case have been fulfilled because after the search and seizure, the assessee had admitted in his statement that income has been derived from the land deals in the present case and thereafter, he filed returns in pursuance of the notice issued to him under section 153 (A) of the Income Tax Act by declaring the same in the returns of income and further, the assessee had paid tax together with the interest on the undisclosed income thereafter. - We further find that assessee had already paid tax along with interest, although belatedly, but there .....

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essment year 2005-06. Return of income tax was filed by the assessee on 31.10.2006 declaring the total income of ₹ 50,96,699/- and agricultural income of ₹ 1,26,378/-. A search and seizure operation under section 132 of the Income Tax Act, 1961 was carried at the residence and business premise of the assessee on 14.11.2006. Thereafter, the respondent- assessee filed his income tax returns in response to the notice served upon him under section 153 (A) of the Income Tax Act, 1961 for the assessment year 2006-07 on 21.10.2008 declaring total income of ₹ 1,19,78,419/- and agriculture income of ₹ 1,26,378/-. The Assessing Officer accepted the returns filed by the assessee but at the same time, initiated the penalty proce .....

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] 25 Taxmann.com 214 (SC) holding therein that the case of the respondent- assessee is fully covered by Clause 2 of Explanation 5 to Section 271 (1) (c) of the Income Tax Act and following three conditions have been satisfied by the assessee:- Firstly, the assessee must make a statement under section 132 (4) of the Income Tax Act in course of search stating that unaccounted assets and incriminating documents found from his possession during the search have been acquired out of his income. Secondly, the assessee should specify, in his statement under section 132 (4), manner in which such income stood derived. Thirdly, the assessee has to pay tax together with interest, if any, in respect of such undisclosed income. Since, all these condition .....

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nsideration by this court. We have scanned through the orders passed by the authorities below. It is an admitted position that for the purpose of getting immunity from the penalty imposed under Clause 2 of explanation 5 to Section 271 (1) (c) of the Income Tax Act, 1961, three conditions are required to be satisfied by the assessee. Firstly, if the assessee makes a statement under section 132 (4) during the course of search admitting his income. Secondly, if he satisfies the manner in which such income has been derived and thirdly, if the assessee pays the tax along with interest in respect of such income. We find that all the three conditions in the present case have been fulfilled because after the search and seizure, the assessee had adm .....

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