2013 (10) TMI 1135

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....he facts of the case are that the assessee filed Return of Income on 31/10/2005 declaring total income of Rs. 3,53,690/- for A.Y. 2005-06. Subsequently, a search and search action was carried out at the premises of the assessee on 30.9.2008. As a consequence of this notice u/s 153A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act', for short] was issued and in response thereof the assessee filed Return of Income [ROI] on 29.3.2010, for A.Y. 2005-06 declaring total income of Rs. 8,82,690/-. The assessment u/s 153C r.w.s. 143(3) was completed on 16/12/2012. This assessed income included the following additions:- (i) Undisclosed income declared by the assessee amounting to Rs. 5.30 lakhs which has not been disclosed in the o....

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....iculars of his income. The incomes of Rs. 5,30,000/- of Rs. 38 lakhs and of Rs. 1.25 lakhs offered for tax are a part of total surrender made u/s 132(4) and is covered by Explanation 5 appended to section 271(1)(c) of the Act. 2.4 For ready reference, we may discuss the scheme of the Act regarding levy of penalty u/s 271(1)(c) of the Act. Before we consider the factual matrix of this case, to ascertain as to whether in the eyes of the provisions of the Act as explained by numerous judicial pronouncements, penalty can be levied in this case or not, we would like to discuss in nut shell the relevant legal position regarding levy of penalty u/s 271(1)(c) of the Act and as to how and when such penalty can be levied under this section. There ....

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.... in the case of Dilip N. Shroff vs JCIT & Another, 291 ITR 519, Union of India vs. Dharmendra Textile Processors [2008] 13 SCC 369, as well as Union of India vs Rajasthan Spg. & Wvg. Mills [2009] 13 SCC 448, the Hon'ble Supreme Court in the case of CIT vs Reliance Petroproducts Pvt. Ltd, 322 ITR 158, has recently held as under: "A glance at the provisions of section 271(1)(c) of the Income-tax Act, 1961, suggests that in order to be covered by it, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars of his income. The meaning of the word "particulars" used in section 271(1)(c) would embrace the details of the claim made. Where no information given ....