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TMI Blog2022 (5) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances is declared in any return of income. The Explanations apply only in the case of search u/s.132 and not the survey u/s.133A of the Act. If the Explanations are excluded from the purview, which are applicable only in search cases and not otherwise, then, addition to income is sine qua non for imposition of penalty u/s.271(1)(c) of the Act. In the absence of any addition or disallowance made by the AO in the computation of total income, there can be no question of any penalty on the income suo motu offered by the assessee in his return of income. As found that the reported income and the assessed income of the assessee remain same except for minor disallowance of expenses. AO has imposed penalty only with reference to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-09-2013 declaring total income at Rs.65,53,700/-. The returned income included a sum of Rs.50,00,931/- surrendered by the assessee during the course of survey proceedings. The AO imposed penalty on the income declared in the survey and offered in the return. Such a penalty came to be affirmed in the first appeal. 3. Having heard the rival submissions and gone through the relevant material on record, it is observed that the assessee was subjected to survey on 13-09-2013. During the course of survey proceedings, the assessee surrendered income of Rs.50.00 lakh and odd which was promptly included in the return of income filed afterwards. During the course of assessment proceedings, the AO made minor disallowances of certain expenses. Afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re applicable only in search cases and not otherwise, then, addition to income is sine qua non for imposition of penalty u/s.271(1)(c) of the Act. In the absence of any addition or disallowance made by the AO in the computation of total income, there can be no question of any penalty on the income suo motu offered by the assessee in his return of income. 4. The ld. DR heavily banked on the judgment of the Hon ble Supreme Court in MAK Data Pvt. Ltd. Vs. CIT (2013) 358 ITR 593 (SC) for bolstering his submission that the amount surrendered by the assessee also attracts imposition of penalty. The assessee in that case filed his return on 27-10-2004 declaring income of Rs.16.17 lakh. Prior to that, a survey action was taken against the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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