2013 (8) TMI 1008

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....,00,000 which has also, been confirmed by the learned Commissioner (Appeals). 2. The relevant facts, apropos the levy of penalty are that, in assessee's case, a search and seizure action under section 132(1) was carried out on 19th June 2007. Accordingly, notice under section 153A was issued to the assessee on 8th October 2008. In response to the said notice, the assessee had filed return of income on 11th February 2009, declaring total income of Rs. 9,57,450. This income also included a sum of Rs. 3,05,000, on account of credit entries in the bank account with the Bank of Baroda account no.27014. It is with regard to this income shown in the return of income filed under section 153A that penalty has been initiated and levied by the Asse....

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....er section 153A, wherein the assessee has included the sum of Rs. 2,05,000, on the basis of credit entries of the bank account. Thus, Explanation 5A to section 271(1)(c) clearly gets attracted and penalty has rightly been levied and confirmed in this case. 6. We have heard the rival contentions and have perused the findings of the Assessing Officer as well as the Commissioner (Appeals). In the present case, penalty has been levied by invoking the provisions of Explanation 5A to section 271(1)(c) (and not Explanation 5, as mentioned by the Assessing Officer). Explanation 5A, is a deeming provision where in case of search and seizure operation carried out under section 132 after 1st June 2007, the assessee is deemed to have concealed the p....

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....ng that such income is declared by him in any return of income furnished on or after the date of search, he shall, for the purposes of imposition of a penalty under clause (c) of sub-section (1) of this section, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income." Thus, in case of search conducted on / or after 1st June 2007, penalty for concealment of income and furnishing of inaccurate particulars of income is deemed under Explanation 5A. However, two exceptions or saving clause has been provided wherein the penalty cannot be levied under this section. Firstly, the assessee has shown the assets as mentioned in clause (i) or income as mentioned in clause (ii), in the return of in....