Section 48 - Amendment of section 271 - Taxation Laws (Amendment) Act, 1984

48. Amendment of section 271. In section 271 of the Income-tax Act, in sub-section (1), after Explanation 4, the following Explanation shall be inserted with effect from the 1st day of October 1984, namely: Explanation 5. Where in the course of a search under section 132, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing (hereafter in this Explanation referred to ay assets) and the assessee claims that such assets have been acquired by him by utilising (wholly or in part) his income, (a) for any previous year which has ended before the date of the search, but the return of income for such year has not been furnished before the said date or, where such return has been furnished before the said date, such income has not been declared therein; or (b) for any previous year which is to end on or after the date of the search, then, notwithstanding that such income is declared by him in any return of income furnished on or after the date of the search, he shall, for the purposes of imposition of a penalty under clause (c) of sub-section (1) of this section, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income, unless such income is, or the transactions resulting in such income are, recorded (i) in a case falling under clause (a), before the date of the search; and (ii) in a case falling under clause (b), on or before such date in the books of account, if any, maintained by him for any source of income or such income is otherwise disclosed to the Commissioner before the said date. .