Scope of Expl.5 to Sec.271(1)(c). - Income Tax - 1757/CBDT

INSTRUCTION NO. 1757/CBDT Dated: May 12, 1987 Explanation 5 to Section 271(1)(c) introduced by the Taxation Laws (Amendment and Misc. Provisions) Act, 1986 provides that if in the course of a search under section 132, the assessee makes a statement under section 132(4) admitting that any asset found in his possession or under his control has been acquired out of his income which has not been disclosed so far in his return of income, specifies the manner in which this income has been derived and pays taxes due thereon, no penalty for concealment shall be leviable. 2. Doubts have been raised regarding the time by which the tax and interest on admitted concealed income has to be paid by the assessee. The Board is of the view that immunity provided under the Section will be available only if the tax and interest due on the admitted concealed income have been paid by the due date specified for filing the return of income either under section 139(1) or 139(2) the Income Tax Act, whichever is earlier.