TaxTMI 
TaxTMI 
2015 (6) TMI 285
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....enalty levied u/s. 271(1)(c) for various assessment years are as under: Assessment years Total Income Returned Total Income Assessed Additional Income Penalty imposed u/s. 271(1)(c) 2003-04 3,76,18,296/- 3,76,18,296/- 3,65,112/- 1,15,010/- 2004-05 1,53,07,690/- 1,53,07,690/- 3,67,462/- 1,21,263/- 2005-06 1,52,05,551/- 1,52,05,551/- 3,80,687/- 1,28,139/- 2006-07 1,49,79,536/- 1,49,79,536/- 4,26,287/- 1,43,488/- 2007-08 1,46,82,233/- 1,46,82,233/- 5,75,984/- 1,93,876/- 2. The brief facts of the case are that the assessee is an individual having income from profession, long term capital gain on sale of shares and income from other sources. A search and seizure action had taken place in the case of Malhotra Group on 24.07.2008, wherein the assessee was also covered under the said search. During the course of search, certain papers were found which showed that some expenses were incurred on payment of salary to drivers and domestic servants of the assessee during the assessment years 2003-04 to 2007-08. In response to notice u/s. 153A dated 09.09.2009, the assessee filed retu....
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....section 143(3) read with section 153A. During the course of assessment proceedings no questions were asked by the AO in respect of payments of salaries of domestic servants and drivers. viii. The order passed by AO in respect of above Asst Year on 31.12.2010 and his order at para 3 and 4 states as under: "Besides, assessee also has declared additional income of Rs. 3,65,112/- in respect of payment of salary to domestic servants and drivers etc. The additional income has ben offered in view of the various loose papers/documents/seized/impounded during search/ survey. Additional Income of Rs. 3,65,112/- Rs. 3,67,462/-, Rs. 3,80,687/-, Rs. 4,26,287/-, Rs. 5,75,984/- and Rs. 6,93,522/- for the AYs 2003-04 to 2008-09 respectively. After discussion, the total income of the assessee as returned in accepted. ix. However, such expenses were offered in all the years under reference to avoid litigation. Thus, additional income was offered voluntarily after extrapolating and to that extent assessee was penalized by way of additional tax and assessee should not be further penalized by way of concealment penalty for voluntarily offering such further additional income by voluntaril....
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.... provision is intended to explain its content and cannot be construed to override it or to render substance and core nugatory. The learned counsel further submitted that during the search certain loose papers were seized from the premises of M/s. Vidyut Metallic Private Limited, Thane, which pertained to certain months and contained certain narration of payments made to domestic servants and drivers serving the assessee and other services belonging to the assessee's family. These papers nowhere indicate that the payments were made by the assessee or for the assessee alone. These papers were not found in the possession of the assessee. The declaration of additional income was made only by way of abundant caution and to avoid any litigation with the department. Otherwise, also the conditions laid down in Explanation 5A, are not satisfied because the transaction recorded do not belong to the assessee. Further he relied upon catena of decisions, which are not discussed as they are not germane to the issue involved. 5. On other hand, the learned DR strongly relied upon the order of the Assessing Officer and submitted that Explanation 5A provides deemed penalty in the cases where the ....
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....e (c) of sub-section (1), such an order of assessment or reassessment shall be deemed to constitute satisfaction of the Assessing Officer for initiation of the penalty proceedings under the said clause (c). Thus, we disagree with the contention raised by the learned counsel that the conditions laid down in the main provisions of section 271(1)(c) has not been fulfilled. Ever otherwise also, if certain additional income is offered/declared in wake of documents/materials found/seized during the course of search and seizure, then that by itself indicates that there is a prima facie concealment of particulars of income. Explanation 5A which has been brought by the Finance Act 2009 with retrospective effect from 01.06.2007 has been specifically brought to cover the cases of search which has been initiated u/s. 132 after 1st day of June 2007. The relevant provisions of Explanation 5A reads as under:- "Explanation 5A.-Where, in the course of a search initiated under section 132 on or after the 1st day of June, 2007, the assessee is found to be the owner of - (i) any money, bullion, jewellery or other valuable article or thing (hereafter in this Explanation referred to as asset....