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TMI Blog2006 (5) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ve concealed the particulars of his income or furnished inaccurate particulars of such income and is thus liable for penalty under section 271(1)(c) – appeal dismissed - - - - - Dated:- 26-5-2006 - Judge(s) : ADARSH KUMAR GOEL, RAJESH BINDAL. JUDGMENT This is an appeal filed by the assessee raising the following substantial questions of law arising out of order dated August 31, 2004, passed by the Income-tax Appellate Tribunal, Chandigarh, Bench" A" (in short "the Tribunal") in I. T. A. No. 493/Chd/2001 for the assessment year 1993-94: "A. Whether, on the facts and circumstances of the case, the appellant can be said to have concealed the particulars of his income or furnished inaccurate particulars of such income and is thus liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olding that the return of income should have been filed by the appellant within time-limit specified under section 139(1) in order to get the benefit of Explanation 5 of section 271(1)(c) of the Income-tax Act, 1961? F. Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was justified in concurring with the Assessing Officer and in rejecting the explanation of the appellant that taxes due on the basis of the returns as filed could have been considered as paid in view of seized assets in addition to the cash seized? G. Whether, on the facts and circumstances of the case, the decision of the Income-tax Appellate Tribunal is perverse being based on erroneous interpretation of legal provisions and irreleva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.10 On going through the relevant provisions, we find that the new Explanations contain the special provisions applicable to the case where in the course of search under section 132 of the Income-tax Act, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thing. The new Explanations provide that if in such cases, the assessee claims that the assets referred to above have been acquired by him by utilizing (whether wholly or in part) his income 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 in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the learned Authorised Representative for the assessee that since no date or time has been prescribed in Explanation 5, sub-clause (2) to section 271 of the Act cannot be withdrawn, has no merits. We are of the opinion that in order to seek immunity under Explanation 5 to section 271(1)(c) of the Act, the assessee was required to fulfil the conditions as specified in Explanation 5, sub-clause (2) to section 271 of the Act as well as the conditions specified in his statement under section 132(4) of the Act while seeking immunity from the Department." We have heard learned counsel for the parties and with their assistance have perused the impugned orders. The only issue sought to be raised by the counsel for the assessee is with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the date of the search he shall for the purposes of imposition of a penalty under clause (c) of subsection (1) of this section, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income, unless, (1) 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 Chief Commissioner or Commissioner before the said date; or (2) he, in the course of the search, makes a statement under subsection (4) of section 132 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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