COMMISSIONER, INCOME TAX Vs. ABDUL RASHID

JUDGEMENT

(1.) THE main point involved in the present case is, 'Whether in order to get benefit of immunity mentioned in clause (2) of explanation-5 of section 271(1)(c) 1 of the Income 1 271. Failure to furnish returns, comply with notices, concealment of income, etc. (1) If Assessing Officer or the Deputy Commissioner (Appeals) or the Commissioner (Appeals) in the course of any proceedings under this Act, is satisfied that any person .... (c) has concealed the particulars of his income or furnished inaccurate particulars of such income, ... he may direct that such person shall pay by way of penalty, .... Explanation 5.Where in the course of a search under section 132, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article or thin (hereafter in this Explanation referred to as assets) and the assessee claims that such assets have been acquired by him by utilising (wholly or in part) his income, (a) for any previous year which has ended before the date of the search, but the return of income for such year has not been furnished before the said date or, where such return has been furnished before the said date, such income has not been declared therein: or (b) for any previous year which is to end on or after the date of the search, then, notwithstanding that such income is declared by him in any return of income furnished on or after the date of the search, he shall, for the purposes of imposition of a penalty under clause(c) of sub-section (1) of this section, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income, unless, Tax Act, 1961 (the Act) (the Explanation), is it necessary to file return before the due date specified under sub-section (1) of section 139 {section 139(1)} of the Act or not.'

(2.) THE Income Tax Department (the Department) conducted a search in the residential premises of Shri Abdul Rashid (the Assessee) in the month of August, 1992. During the search, the Assessee surrendered an amount of 8,50,000.00 and made a statement on 11.09.1992 regarding the manner in which the surrendered income was derived in the previous year ending on 31.03.1992.

(3.) THE due date for filing return under section 139(1) of the Act for the Assessee for the assessment year (AY) 1992-93 was 31.08.1992. However, the return for the same was filed belatedly on 19.08.1994. The return included the surrendered income.