Surrender of Income during survey

[Sanjay Aggarwal]

A survey was conducted on the assessee in December, 2009. The survey party did not find anything descremenating. However, the assessee was forced to surrender an amount of Rs. 1 crore on the basis of some jottings made by the assessee containing dates falling in FY 2009-2010. The assessee while recording the statement, pleaded that no penalty be levied on this amount and paid the tax on this income. The assessee subsequently, in the month of January 2010, deposited the surrendered amount in his bank account. As already stated, the assessee has already deposited tax on this income. So that no penalty is levied on this income, The queries are as under:- Under what head of Income, this income should be declared by the assessee? Is assessee required to disclose the source of this cash and prove source of this cash

AI Summary

Assessee's Forced Surrender of Rs. 1 Crore: Section 271AAA Penalty Inapplicable Due to Section 133A Survey Jottings A survey conducted on an assessee in December 2009 led to the forced surrender of Rs. 1 crore based on jottings related to FY 2009-2010. The assessee paid tax on this income and deposited the amount in January 2010, requesting no penalty. Queries arose regarding the income declaration head and the need to disclose the cash source. The response indicated that the jottings' nature determines the income head, and no penalty applies if income is disclosed in the return. Section 271AAA is inapplicable to proceedings under section 133A, so the income source need not be specified.