Penalty can be levied on unrecorded receipts, expenditure and investments declared by assessee pursuant to search

Brief of the case:

In the case of ACIT Vs. Dr. Nitin Laxmikant Lad Pune Bench of ITAT have held that where assessee had furnished original return of income in which he had not declared its receipts from the profession, but pursuant to the search and seizure operation, certain incriminating documents were seized, which contained unrecorded receipts, expenses and investments in various financial years and the assessee in response thereto, declared the additional professional fees and paid taxes, no question of levy of penalty u/s 271 (1) (c) arises.

Facts of the case:

• Search and seizure action under section 132 of the Act was conducted at the residential premises and Clinic of the assessee on 16.01.2009. During the course of search, certain books of account and documents were seized from the premises of the assessee.

Please become a Premium member. If you are already a Premium member, login here to access the full content.