2003 (12) TMI 40

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessment years are 1985-86 and 1986-87. The question referred is as to whether the Tribunal was right in cancelling the penalty levied under section 271(1)(c) read with Explanation 5 thereunder after the Tribunal found that the assessee had not filed the return of income before the due date mentioned under section 139(1) of the Income-tax Act. There was a search in the premises of the asses....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome. That part of Explanation 5 reads as under: "271. (1) (c) ... (1) such income is, or the transactions resulting in such income are recorded,- (i) in a case falling under clause (a), before the date of the search; and (ii) in a case falling under clause (b), on or before such date, in the books of account, if any, maintained by him for any source of income or such income is ot....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e for such year has not been furnished before the said date or, where such return has been furnished before the said date, such income has not been declared therein; or (b) for any previous year which is to end on or after the date of the search." While clauses (a) and (b) make a clear distinction between the previous year which has ended before the date of the search, and the previous year ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....are not to be read as referring to income so far not disclosed in respect of the previous year which is to end after the date of the search. The words used are "income which has not been so far disclosed in his return of income". The additional words which refer to the time specified in section 139(1) are only a reiteration of the legal requirement regarding the time within which returns should no....