2013 (2) TMI 121

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....ction 158BFA (2) of the Income Tax Act, 1961, has been affirmed. A search and seizure was taken under section 132 of the Act in the case of appellant's wife at her premises on 26.2.2003. During the course of search, certain documents and diaries, cash, fixed deposits etc. were seized. Block assessment under section 158 BC was completed in her case. During the course of said search at the premises of wife of the appellant, certain documents and diaries pertaining to the appellant was found and seized. Proceedings under section 158 BD were initiated by way of issuance of notice under section 158 BC read with section 158 BD of the Income Tax Act. In response, the assessee filed return in Form No.2B on 25.4.2005 declaring the undisclosed ....

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....a period of one year from the end of assessment year or passing of assessment orders whichever is earlier. The assessment years in question are 1997-98 to 2003- 2004. No doubt, for a period of one year or so the bar under section 139 may not apply. As far as other years are concerned, it is not even open to the appellant to contend that he has filed revised return as understood by section 139. Be that as it may, we will pass on to consider the effect of proviso to section 158 BFA. It is the point sought to be focused before us by the learned counsel for appellant. Section 158 BFA (2) and the provisos read as follows: Levy of interest and penalty in certain cases. 158 BFA(2) The Assessing Officer or the Commissioner (Appeals) in th course....

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....clause (1) to the proviso. His contention however is that, if we pass on to the next clause namely, he has offered the money. According to him, he offered that tax due can be adjusted from the amount seized. Therefore, requirement of clause (2) would be satisfied. Since clause (2) is satisfied, as also the fact that he has not filed any appeal against the assessment of that part of income shown in the return, the requirements of the proviso are satisfied and consequently he is legally protected from penalty proceedings, it is submitted. In this context, he drew our attention to an unreported judgment of this court in ITA.323 of 2002, particularly to the following passage: "It may be noticed that penalty under the above provision is th....