1995 (7) TMI 109

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 271(1)(c). 2. The facts of the case are that a sum of Rs. 1 lakh was seized from the assessee by the Directorate of Revenue Intelligence on 5-7-1986, in a hotel room at Bombay. The amount was later on requisitioned by the IT Department under the provisions of section 132A on 25-11-1986. The assessee filed his return of income in response to notice under section 139(2) in which he included this a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... at the first instance, penalty under section 271(1)(c) for concealment was attracted to his case. Accordingly, the ITO imposed penalty of Rs. 60,000 on the assessee. 3. At the first appellate stage, the CIT(A) accepted that plea of the assessee that inasmuch as the assessee had included the amount in his return of income, there was no question of making any concealment of income and also that t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... this case, the assessee himself offered the amount as his income and no further addition was made in the assessment. Hence, concealment as such, cannot be considered to have taken place. Let us now come to the question of whether Explanation 5 to section 271(1)(c) would be applicable to the present case. Section 132 alone relates to search and seizure proceeding conducted by the IT department. On .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... earch under section 132 ". This particular Explanation cannot, therefore, be considered to apply to a case where proceedings under section 132A only have been taken recourse to. It is correct that the provisions of sub-sections (4A) to (14) (both inclusive) of section 132 shall, so far as may be, apply to proceedings under section 132A also, as if such books of account, other documents or assets h .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ase proper search under section 132(1) has been conducted, is entitled. Taking into consideration all these facts, therefore, we are of the opinion that Explanation 5 to section 271(1)(c) does not apply to a case of requisitioning of assets under the provisions of section 132A. The instant case also, therefore, would not fall within the mischief of the said Explanation. Hence, we agree with the de .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X