Case Law Details
Pr. CIT Vs Shanti Lal Jain (Rajasthan High Court)
It is an admitted position that for the purpose of getting immunity from the penalty imposed under Clause 2 of explanation 5 to section 271(1)(c) of the Income Tax Act, 1961, three conditions are required to be satisfied by the assessee. Firstly, if the assessee makes a statement under section 132(4) during the course of search admitting his income. Secondly, if he satisfies the manner in which such income has been derived and thirdly, if the assessee pays the tax along with interest in respect of such income.
We find that all the three conditions in the present case have been fulfilled because after the search and seizure, the assessee had admitted in his statement that income has been derived from the land deals in the present case and thereafter, he filed returns in pursuance of the notice issued to him under section 153A of the Income Tax Act by declaring the same in the returns of income and further, the assessee had paid tax together with the interest on the undisclosed income thereafter.
Since assessee had fulfilled all the three conditions, therefore imposition of penalty was not justified.
FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:
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