Case Law Details
Rahul Shamrao Mahajan Vs ACIT (ITAT Pune)
ITAT Pune held that penalty u/s 271(1)(c) of the Income Tax Act duly leviable in case the additional income is disclosed in ITR filed u/s 153A and such additional income is originated out of seized material.
Facts- The appellant for AY 2014-15 has set-up case alleging that the penalty u/s 271(1)(c) of the Income Tax Act is not attracted for the income voluntarily disclosed by him u/s 153A of the Act and which was accepted by the department without any variation.
Conclusion- Admittedly the additional income so disclosed in the ITR filed u/s 153A was solely attributable and arising out of such unrecorded entries. Therefore once it is clearly and undisputedly established that the additional income disclosed and returned in the ITR filed u/s 153A is indeed originated out of seized material, then explanation 5A of section 271 of the Act comes into play notwithstanding the returned income was accepted without variation. Therefore in the light of settled legal position the action of tax authorities in invoking the penal provisions for levy of penalty u/s 271(1)(c) on such account is well within the law and cannot be faulted.
FULL TEXT OF THE ORDER OF ITAT PUNE
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