On voluntarily disclosure in response to notice u/s 153A before any detection by revenue, immunity from levy of penalty can’t be denied

Brief of the case:

In the case of DCIT Vs. Deepak Chaudhary Kolkata Bench of ITAT have held that the assessee has cumulatively satisfied all the conditions stipulated in Clause 2 of Explanation 5 to Section 271(1)( c) of the Act and hence entitled for immunity from levy of penalty for all the assessment years under appeal. ITAT further held that the assessee had made voluntary disclosure of Rs. 25,00,000/- for the Asst Year 2005-06 during the course of search assessment proceedings after filing the return u/s 153A of the Act but before any detection by the department. The expression ‘to be furnished’ mentioned in Clause 2 of Explanation 5 to Section 271(1)(c) has to be construed as ‘required to be furnished u/s 153A of the Act.

Facts of the case:

• A search and seizure operation was conducted on 23.8.2006 u/s 132 of the Act in the Builder group of cases. The assessee is one of the individuals belonging to this group.

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