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2015 (8) TMI 805 - ITAT CHANDIGARHPenalty u/s 271(1)(c) - income surrendered during search - Held that:- Assessee had surrendered a sum of ₹ 2.5 crores and he could have easily sought immunity against the penalty under explanation 5 to Section 271 (1) (c). However, the assessee did not owned his commitment and retracted from the declaration made during search and did not include the amount of surrendered income in the original return filed by him. The assessee filed revised return on 2.12.2008 through which surrender amount has been included in the return but this has clearly been done after the assessee was again cornered during the assessment proceedings. In any case as observed by the ld. CIT(A) mere filing of revised return would not grant any immunity to the assessee from levy of penalty is true. The combined reading of Section 132 (4) and explanation 5 to Section 271 (1) (c) would clearly show that immunity is available if the income is surrendered during search and the manner of earning such income is also disclosed and the assessee based on such disclosure paid tax on the same. In case before us after having made surrender the assessee simply retracted from the statement and did not include the amount of surrender in the return of income. The income was included through revised return which has not been accepted by the Assessing Officer because same was late. In any case the revised return was furnished only when the assessee was fully cornered during the assessment proceedings. In addition some more items of income were also found to be concealed particularly in respect of platinum and silver jewellery. Therefore, it is a clear case of concealment and penalty has been rightly levied and confirmed by the ld. CIT(A). - Decided against assessee.
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