P. Rajaswamy, Raja Jewellery vs Commissioner of Income Tax

C.N. Ramachandran Nair, J.—This appeal is filed u/s 260A of the Income Tax Act against the order of the Tribunal confirming penalty levied u/s 271(1)(c) of the Act for the assessment year 1983-84. We heard Counsel appearing for the appellant and senior standing Counsel appearing for the respondent. On going through the Tribunals order we find that appellant filed as many as three returns for the assessment year 1983-84. While in the first return appellant returned an income of Rs. 17,563, in the second return filed after search the assessee returned an income of Rs. 96,200. Thereafter assessee filed another return on 18-4-1989 declaring a further income of Rs. 1,12,640. All the authorities below including the Tribunal found that assessee did not voluntarily disclose the amount of Rs. 96,200 which remained in deposit in the assessees name in Syndicate Bank. Even though Counsel for the assessee submitted that assessee disclosed this amount under the Amnesty Scheme, it is seen that such disclosure was after search and detection of deposit by the department. The declaration for the purpose of avoiding penalty should be voluntary and before detection of the concealed income by the department. Since in this case assessee conceded income after the department detected the same, assessee cannot avoid penalty. It is seen that the amount of penalty levied is minimum payable u/s 27I(1)(c) of the Act. We therefore find no ground to interfere with the Tribunals order. We therefore dismiss the appeal.