TaxTMI 
TaxTMI 
2006 (5) TMI 75
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....accurate particulars of such income and is thus liable for penalty under section 271(1)(c) especially in the light of Explanation 5 thereof? B. Whether, the decision of the Income-tax Appellate Tribunal and the authorities below is erroneous in upholding the levy of penalty under section 271(1)(c) of the Income-tax Act, 1961, on a conditional surrender (i.e., to avoid litigation and subject to no penalty) which is admitted to have been made on a mistaken belief corroborated by the fact that no incriminating facts, documents, income or any assets have been found or established against the appellant? C. Whether, the decision of the Income-tax Appellate Tribunal and the authorities below is perverse in view of the facts and circumstances of ....
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....nterpretation of legal provisions and irrelevant factors and is thus liable to be set aside?" The facts in brief are that the search and seizure operation, under section 132 of the Act, was carried out at the business and residential premises of family on August 30, 1993. As a result thereof valuables including cash, jewellery, etc. were found and seized besides other incriminating materials. During the search the assessee made a disclosure of Rs. 3,00,000 under section 132(4) of the Act. It is not in dispute that for the assessment year in question the return of income was to be filed by the assessee on or before October 31, 1993, but the same was not filed within time and was filed on May 23, 1994. It is further not in dispute that the a....
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....te, such income has not been declared in the return, the assessee shall, for the purposes of imposition of penalty under section 271(1)(c) of the Income-tax Act, be deemed to have concealed the particulars of income or furnished inaccurate particulars of such income unless such income is, or the transactions resulting in such income are, recorded before the date of the search in the books of account, if any maintained by him for any source of income or such income is otherwise disclosed to the Commissioner before the date or unless the assessee in the course of search, makes a statement under section 132(4) of the Act that any money, bullion, jewellery or other valuable article or thing found in his possession or under his control, has been....
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....he counsel for the assessee is with regard to levy of penalty keeping in view Explanation 5 to section 271(1)(c) of the Act. Penalty under section 271(1)(c) of the Act is leviable in case an assessee is found to have concealed the particulars of income, or if he furnishes fresh particulars of such income are led by the assessee after search and seizure operation itself would show that during the year in question, the assessee had concealed the facts of his income. Explanation 5 added by the Taxation Laws (Amendment) Act, 1984 with effect from October 1, 1984, provides for a special provision where search under section 132 of the Act had taken place. The relevant provisions of Explanation 5 to section 271(1)(c) of the Act are extracted belo....