2018 (6) TMI 355

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.... of by this common order. 2. The facts of the case are that a search u/s. 132 of the Act was carried out at the residential premised of the assessee and in the office and business premises of M/s. Kent Construction Pvt. Ltd. on 10/01/2013. Simultaneous searches were conducted at the residence of the Directors namely Shri T.P. Vinayan and the Accounts Manager of the assessee, Shri K.V. Binu. During the course of search vital evidences of investments made in the name of the assessee and family members were found and seized. By invoking the powers vested u/s. 153A of the Act, the assessment of the assessee were re-opened from the assessment year 2007-08 to 2012-13. Thereafter, a notice u/s. 153A was served on the assessee requiring him to fur....

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....h reads as follows: ".....notwithstanding that such income is declared by him in any return of income furnished on or after the date of search, he shall, for the purpose of imposition of penalty under clause (c) of sub-section (1) of the section, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of income." In view of the above explanation, the CIT(A) held that the onus is not on the Assessing Officer to prove that there was concealment of income, but if there is a difference in the return of income filed before the search and the one filed on or after the search, the difference shall be treated as deemed concealment. Accordingly, the CIT(A) confirmed the penalty levied by the Assessing Office....

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....evious year; or (ii) any income based on any entry in any books of account or other documents or transactions and he claims that such entry in the books of account or other documents or transactions represents his income (wholly or in part) for any previous year, which has ended before the date of search and, - (a) where the return of income for such previous year has been furnished before the said date but such income has not been declared therein; or (b) the due date for filing the return of income for such previous year has expired but the assessee has not filed the return, then notwithstanding 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 impos....

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....king the provisions of Explanation 5A of the Act. This view has been fortified by the order of the ITAT, Cuttack Bench in the case of Sarat Chandra Sahoo vs. DCIT in ITA Nos. 130/CTK/2013 and ITA Nos.131 to 137/CTK/2013 dated 17th October, 2014 wherein it was held as under: "6. We have considered the rival submissions. A perusal of the facts in the present case as has been recorded by the Assessing Officer clearly shows that this was a case of survey under section 133A conducted on 13.08.2008. In the survey, various unexplained investments were found. Consequently the survey was converted into a search. Now the question that would arise is as the assessee offered the additional income as the consequence of the search or was the undisclosed....