TaxTMI 
TaxTMI 
2024 (5) TMI 864
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....d. CIT(A) in confirming the penalty amounting to Rs. 25,29,160/- u/s 271(1)(c) read with Explanation 5A on the declared income in the return filed in response to notice u/s 153A of the Act, consequent to search without appreciating the fact that there was no difference between the assessed and return income filed in response to notice u/s 153A. 2. The Ld. Counsel submitted that a search and seizure operation u/s 132 of the Income tax Act. 1961 were carried out 07.04.2011 on the assessee and his family members both at the residential as well as business premises. The assessee accordingly filed his return of income in response to notice u/s 153A of the Income Tax Act. 1961 declaring total income of Rs. 80,39,270/- for the assessment year 2....
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....e ITAT, Chandigarh bench, Chandigarh in ITA No.516/Chd/2012 without considering the submission of the appellant that since, no incriminating documents were found, penalty cannot be automatically imposed. He pleaded that the penalties levied by AO and confirmed by the CIT(A) are bad in Law and deserve to be deleted. In support of the Ld. AR relies on the following decisions: 3.3 Ajay Trader v/s DCIT, Central Circle. Alwar- 1TA No.296/JP/2014. The finding of the Hon'ble ITAT order is reproduced hereunder:- "We have heard rival contentions and perused the material on record. It is undisputed fact that during the course of search, no incriminating documents were found and seized. The assessee surrendered the additional income ....
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....re is no corroborative evidence/ material/ document in support of income so surrendered and offered for taxation and the same is only on the basis of the statement of the assessee recorded during search. The declared income is also finally assessed as such. Following the decisions discussed in paras 4.4 the penalty levied on this account u/s 271(1)(c) of the Income Tax Act, is not sustainable and accordingly the same stands as cancelled." 3. The Hon'ble ITAT Jaipur Benches, Jaipur in the case of Ajay Traders v. DCIT in ITA No. 296/JP/2014 for AY 2007-08 dated 06.05.2016 held para 4.7 is as under: "4.3 We have heard rival contentions and perused the material on record. It is undisputed fact that during the course of search, no in....
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....eedings u/s 271(1)(c) read with section 274 by invoking the explanation (5A) on account of additional income declared in the return filed in response to notice u/s 153A of the Income tax Act. 1961 as compared to original returned filed u/s 139(1) of the Act. The Ld. CIT(A) rejected the contention of the assessee only on the basis that additional income has been offered in the return of income filed u/s 153A, and the extra income declared in the return represent concealment income without being substantiated with reference to any incriminating material found/ seized during search or corroborative evidence brought on record by way of enquiry. 8. For the purposes of clarity, the Explanation-5 A to section 271(1)(c) is reproduced hereunder:-....
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....f any money, bullion, jewellery or other valuable article or thing or there is some income based on the entry in the books of accounts/ documents during the course of search u/s 132 or requisition u/s 132A of the Act, and then only it shall be presumed that the assessee has concealed the particulars of income or furnished inaccurate particulars of income. However, in the instant case there is no such allegation made either by the Ld. AO or by the Ld. CIT(A). From the record, it is apparently clear that the assessee has disclosed additional income in the return filed u/s 153A of the Act voluntarily and without having found any income by the revenue in the manner provided under explanation (5A) to section 271(1)(c) of the Act. 10. The deci....