2022 (6) TMI 516

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....urn on 06-11-2015 declaring total income of Rs.1,55,79,450/-. The total income included a sum of Rs.1.50 crore declared by the assessee as additional income during the course of survey u/s.133A of the Act conducted on 24-02-2015. The Assessing Officer (AO) completed the assessment at the returned income and thereafter imposed the penalty u/s.271(1)(c) of the Act on the income of Rs.1.50 crore. The reason given by the AO was that the assessee would not have offered its income if the survey had not taken place. The penalty came to be deleted in the first appeal. 3. Having heard the rival submissions and gone through the relevant material on record, it is observed that the assessee was subjected to survey on 24.02.2015. During the course of s....

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.... income can be added only when it is not offered in the return of income. If it is offered in the return of income, then it cannot be said to be added by the AO for the purposes of Explanation 1 to section 271(1). Explanations 5 and 5A of section 271(1) deal with the imposition of penalty under this provision even where the income in the given circumstances is declared in any return of income. The Explanations apply only in the case of search u/s.132 and not the survey u/s.133A of the Act. If the Explanations are excluded from the purview, which are applicable only in search cases and not otherwise, then, addition to income is sine qua non for imposition of penalty u/s.271(1)(c) of the Act. In the absence of any addition or disallowance mad....