Whether, even if no incriminating document is found during the search but assessee makes some voluntary disclosure, penalty is still warranted?

Abdul Razzak A Rajkotia Vs ACIT (ITAT Mumbai)- There is no material worth the name found at the time of search divulging the undisclosed income earned by the assessee by way of unrecorded sales. Seized material relates to unrecorded sale by the `Compay’ and that too for a period of 18 days from 0 1.04.2003 to 18.04.2003. Neither there is any mention of such seized material containing the unrecorded sales of the assessee’s proprietorship concern, nor it is the case of the Assessing Officer that there was anything else to show that the assessee was also indulging in recording sales partly only.

Here also the assessee, as a group, surrendered a particular sum, which was honoured by duly offering the additional income for taxation by filing revised returns containing such income. It is further important to note that it is a case of search and there is no reference to any other undisclosed income having been earned by the assessee or any undisclosed assets in the shape of stock or otherwise fund to have been possessed at the time of search. The offering of Rs.8,00,000 by the assessee in the shape of additional income in these six years was a voluntary surrender uncoupled with any adverse material which could form the basis of concealing of income or furnishing of inaccurate particulars of income by the assessee. In our considered opinion, no case has been made out for the levy of penalty u/s 271(1)(c).

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES “A”, MUMBAI

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