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TMI Blog2013 (11) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... y, for the impugned assessment years. It seems, during the course of search, certain documents were seized which reflected the following investments made by the assessee:- 10.8.2006 Plot at Arul Nagar Rs. 1,05,750/- 20.3.2002 Land at Puduvoyal Village Rs. 1,27,750/- 20.3.2002 Land at Puduvoyal Village Rs. 37,400/- 20.3.2002 Land at Puduvoyal Village Rs. 17,850/- 10.01.2007 Agricultural land at Kummangalam Rs. 8,01,500/- 31.8.2005 Land at Kolathur Village Rs. 9,34,800/- 17.2.1997 Land at Poonamallai Village Rs. 1,10,000/- Rs. 21,35,050/- A questionnaire was issued to the assessee on 5.10.2010, during the course of assessment proceedings, for the impugned assessment years. In reply to such questionnaire, assessee stated that she had returned income for the impugned assessment years considering the investments made in the immovable properties. The break-up, as furnished by the assessee, read as under:- Sl. No. Property Date of purchase Cost (Rs.) Income admitted in IT return for A.Y 1 Plot No.27, Thillainagar, Kolathur 31.08.2005 10,19,330 2006-07 2 Plot No.24, Arul Nagar 10.08.2006 1,15,414 2007-08 3 Agricultural land at Kummang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) was appreciative of the above contentions of the assessee. According to him, income was declared voluntarily by the assessee and such declaration was not due to detection of any undisclosed income, during the search proceedings. He thus deleted the penalty levied for both the assessment years. 7. Now before us, learned D.R., strongly assailing the orders of CIT (Appeals) for both the assessment years, submitted that assessee had not furnished her returns within the period prescribed under Section 153(1) of the Act. Assessee had failed to file her returns in the ordinary course. Hence, Explanation to Section 271(1) was attracted. Assessing Officer was satisfied that assessee had taxable income, which would not have been disclosed but for the search. In such circumstances, Explanation to Section 271(1) could be applied. Assessee had to be deemed to have concealed particulars of income in respect of such assessment years, notwithstanding the fact that assessee had filed her returns of income. As per learned D.R., Department at the time of search, had found that assessee had invested substantial amounts in immovable properties and but for such detection, assessee would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; (i) any money, bullion, jewellery or other valuable article or thing (hereafter in this Explanation referred to as assets) and the assessee claims that such assets have been acquired by him by utilising (wholly or in part) his income for any previous year; or (ii) any income based on any entry in any books of account or other documents or transactions and he claims that such entry in the books of account or other documents or transactions represents his income (wholly or in part) for any previous year, which has ended before the date of search and,- (a) where the return of income for such previous year has been furnished before the said date but such income has not been declared therein; or (b) the due date for filing the return of income for such previous year has expired but the assessee has not filed the return, then, notwithstanding that such income is declared by him in any return of income furnished on or after the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of the undisclosed income. (3) No penalty under the provisions of clause (c) of sub-section (1) of section 271 shall be imposed upon the assessee in respect of the undisclosed income referred to in sub-section (1). (4) The provisions of sections 274 and 275 shall, so far as may be, apply in relation to the penalty referred to in this section. Explanation.-For the purposes of this section,- (a) "undisclosed income" means- (i) any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions found in the course of a search under section 132, which has- (A) not been recorded on or before the date of search in the books of account or other documents maintained in the normal course relating to such previous ..... X X X X Extracts X X X X X X X X Extracts X X X X
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