The Tax Publishers2019 TaxPub(DT) 5729 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under Explanation 5A to section 271(1)(c) could be attracted if assessee was found to be owner of any money, bullion, jewellery or other valuable article or other documents or transactions. There could not be any penalty under Explanation 5A to section 271(1)(c) merely on the basis of the statement furnished under section 132(4), until and unless it was supported with the incriminating document. Hence, no penalty could be levied.

Penalty under section 271(1)(c) - Difference of income disclosed in returns filed under section 139(1) and section 153A - Imposition of -

The only issue raised by assessee was that CIT(A) erred in confirming the penalty imposed by AO on account of difference in income declared in return filed under section 139 and income disclosed in return filed under section 153A. Held: Penalty under Explanation 5A to section 271 (1)(c) could be attracted if assessee was found to be owner of any money, bullion, jewellery or other valuable article or thing or any income based on any entry in any books of account or other documents or transactions. But, in the cash-in-hand, there was no such allegation made against the assessee either in the assessment or in CIT(A) order. There could not be any penalty under Explanation 5A to section 271(1)(c) merely on the basis of the statement furnished under section 132(4) of the Act, until and unless it was supported with the incriminating document. Thus, no penalty could be levied.

REFERRED : Kirit Dahyabhai Patel v. Asstt. CIT (2015) 80 taxmann.com 162 (Guj) : 2015 TaxPub(DT) 2190 (Guj-HC) Ajay Traders v. DCIT (2016) 81 taxmann.com 463 (Jp) : 2016 TaxPub(DT) 2829 (Jp-Trib)

FAVOUR : In assessee's favour

A.Y. : 2005-06 to 2009-10

INCOME TAX ACT, 1961

Section 271(1)(c)

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