Penalty cannot be imposed for mere disclosure of income due to search operation, instead of original return

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 conditi...