2008 (2) TMI 574 - HC - Income Tax

Penalty- concealment- Held that- assessee disclosed this amount under the amnesty scheme it is seen that such disclosure was after search and detection of deposit by the Department. The declaration for the purpose of avoiding penalty should be voluntary and before detection of the concealed income by the Department. Since in this case assessee conceded income after the Department detected the same the assessee cannot avoid penalty. Thus the appeal has dismissed.

Summary

Issues: Appeal against penalty levied under section 271(1)(c) of the Income-tax Act for the assessment year 1983-84.

Analysis:
1. The appellant filed three returns for the assessment year 1983-84, showing varying incomes.
2. The appellant initially declared an income of Rs. 17,563, later increased it to Rs. 96,200 after a search, and then further to Rs. 1,12,640.
3. Authorities found that the appellant did not voluntarily disclose the amount of Rs. 96,200 deposited in Syndicate Bank.
4. The appellant claimed to have disclosed the amount under an amnesty scheme, but it was after detection by the Department.
5. Voluntary disclosure to avoid penalty should be made before detection by the Department.
6. Since the appellant admitted the income only after detection, they cannot avoid penalty.
7. The penalty levied was the minimum under section 271(1)(c) of the Act.
8. The Court found no grounds to interfere with the Tribunal's order and dismissed the appeal.