The Commissioner Of Income Tax vs Smt Mukta Sridhar on 19 October, 2011

[Cites 12, Cited by 1]

Karnataka High Court

The Commissioner Of Income Tax vs Smt Mukta Sridhar on 19 October, 2011

Equivalent citations: 2012 (1) AIR KAR R 759, 2012 TAX. L. R. 196

Bench: Manjula Chellur, Aravind Kumar

 

IN THE HIGH COURT OF KARNATAKA, BANGALORE

DATED THIS THE 19TH DAY 0? OCTOEER, 2011  VT

PRESENT V
THE HUMBLE MRS. JUSTICE MAN}U»L..A§ZH_fE.LLLJ§.';V»  '
THE ¥~iON'BLE MR. ]USTIC'éEV._{$'f2..I§'~VI--f%£'t3'V:¥$L3E'fiA:I%  

INCOME TAX APPEAL :x:os#.s:.3 

670,673,S65.S67,570;5?2,E74,S89,S92,594,598,

600, 501. 602., 605, 609, 6-:1,614;'e317-,LT:a.;;;._622 625
628, 632. 630, 537, 64"_1V_,v"5.$§€,-.,'_S11,*".58'3"V_*{}E- 2008

 

m I.T.A.Nos.S13,;"Si2 ?OEMZC;Q§ 
BETWEEN " 4' 1' %

1. The:,Comm"is'.3,ioné'r cf I{1_Come~tax
Central'-CEs'c!e' "-~., ». " % %
C. R. 'am:-ding "  "
QueenS"R§0%ad '
Bangaéore' ..

"-2, '"'r"'"-$38 i§;ssi"siant Caééémésgéoney ®§
' _"E::;<:<;.sfr1e%~'¥Ta'>-:. __
 V ._cea~.%:%:5a.:¢ C%':'£.EVe_j..-» 2(3)
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ANS)

Smt. Mukta Srédhar
No.30, Mahanta Layeut
Qff. But! Tempie Read  
Bangalore~560 01%  E?.ESP{)P~3§HEE'x3T'--s_'~2. 

(By Sri. Chg/thanya.K.K, Adv.)

The Inceme Tax Appeal N0:;}S'13',« A512 .;C-f%'2f)OV8'--ere"'s
fiied ufs 260-A of the Income Tax 'Act,_-~1961=.ari.si'ng'dui: 
Ordertkﬁeﬁ 13.12.200? passed we1TALNs.se5;eang/2a85;=,
664/8angf2G06 for the Assessment "Sear 2G03é,G4.,,_ 2002» _ v

03 respectiveiy praying to "'-ufe1=muIate--.Vt'he:"_: smbstantiai
questions of Eaw stated therein,"a,3iow the"a«.ppea¥s}and set
aside the order passedzhy the"fE'i".'At_:"E'",.t 'E}angaEore* in" ITA No.
665/BNCVZOGS, s64ﬂNG/20Q6."arespecmvmy dated
13.12.2007 confirming the Atsrc-}e'r:"passe,¢~~.Vby{ the xixgpeiiate
Commissioner and coinfirrtxts they or'der"'--v...p'assed by the
Assistant Cemmisséeneér o€_V}T;nc.oi*z*z"_e}-.T*c1>é=,' Centre; Cirde «--~

2(3), Bangaietee.   . *

IN L11h,N€L£:4#§E:2Qde£"a"

BEHNEEN,'

1. "f'be., Cemmiessmrz'-er'0f Zﬁcomewtax
Ceetéei Cireie-.. _ _
'?C.'R;_"tBu'%-Eding " """ "

1" -Queens ~E§t}'adj
" _2Bar:ga.§_;e:"e  

2; Tfﬁe :%*§ss§'s::.t85%:t CQE"'£"'ii"%"E§SS§%%'¥€E" ef
§?'sC.e"!*zf'§e-=--?"E""e><
Cerattssi ﬁiscie M» 2&3}

y=§R;&smmg
 = _,Qé;eens Reed
 ﬁeegaéere

 ;i§f?Eij..AE'~$"?§

 S21 M, V. Seshaehaia, edveeete)

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AND

Smt. Sathyavathi
No'446 A, C.T,Bed
\/Edyapeeta Layout
Banashankari III Stage

Kathréguppe    V " 
Barzgatore  RESP_Oi33DENT~--  t.
(By Sri. Chythanya.K.§<," Adv.)      0

This Income Tax Appeai is'ﬂied:2/s'=2'6to?}'A 
Income Tax Act, 1961 artising Qui~.. of Q"sfr_ie:" dated 
13.12.2007 passed in ITA.N0..666/Bang/20.{)6~...'vfosi -the 2 '

Assessment Year 2001-02 b:(a<y'»ing to.__'?'er'mLﬁ,ate the
substantiai questions of lawV_.._state'd.._Vthere«ir;,_ avviiow the
appeal and set asidethe _0rder*--_4pas:;ed bythe ITAT,
Bangaiore in ITA Ne. "E66,IBanij/':2006ndated 13.12.2007
confirming the order of the AfppeIEas~t_e"vfgonjmissioner and
confirm the erderpassed"by..the' A's.sEstanfComméssioner ef
Income Tax, C'e'r'e:"a::;f;:%i CH'__C§€€ ~=~~2(3~),"Bangeflore.

IN 1."t.<A.NQ§664t  . t
BETwEE3\:.__"  ' 

it "§"he_ Comén&ssE.QVr:.er'Qf :E~r*zceme~tax
§erit:*ai C§t<:':'Ee._
'   ..... 
. 'n_Quee:1.s.fR;eaé
 A   

2; ,"j'_E"§'2e §;¥:3E:§§"$§;::"'sfE'%'£ Cemmissiener ef
Ee<:ev:?:ée'--"'?I*a><
 Ceéttrai Céreée --- Z53}
 AA  Rfﬁigéiéirzg
 Q?':;«:eer'§s Qeae
"5'a:sgeie:*e  ﬁaPPE§m§W,éE'»§"E'"S

 V   "(By Sri, M, Ki, Seshachaéag Aéxrecaie)

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AND

Shri. S. Kumar (HUF)
N0446 A, C. T. Bed
Védyapeeta Layout
Banasharzkari III Stage

Kathriguppe
Bangaiore

(By Sri. Chythanya.K.K, Adv.)

This Income Tax Appeat fited_ L;;,/s  é0f':';t.He . ,
Income Tax Act, 1961 ari's@7r*eg 0:.s't.__o'f.2LD_rd"er""=dated "

     _  1'

13.12.2007 passed in ITA.Néxééﬂ/Ban'g-,/'Z0136 for the
Assessment Year 2O€315O2 ,-;:»'ra§zing'~-»0't0 fo:<mu3'ate the
substantial questions'-r3f'M«--Eaw sta't'e_€,_'thAerein, atiow the
appeai and set aside 't'h_e' ordey passecﬁby the ETAT,
Bangaiore in ITA No. 560;.Bang,(20'0v5"dated 13.12.2007
confirming the.s:>&rd.er (if the; A.p§3.e%1_ate Ciimmissioner and
confirm the 0sfdet}1i2';)asse--d b_y"the'As'si"si-ant Commissioner of
Income Tax;,"VC'ent';=a--E'__CEr«g;;..3_ 2/2:;-3)';,_'Ba_ngaE0re.

IN I.T.:A.N0".26é»2  
BETWE"E.[_ﬂ_ _  A'  

1.

Fm I 

A "QL'seEe2ns "ﬁeaé

The C0in_4missEV0nesf'. 0f.:'i':.'2e0me--tax
Ce-ratrai C§':'Cl8' .  ' 
C; R;*Bu%id%n'g--.. 

1:-'"¥~§W'%@ Aisiséééhé Qemmisséener 0%
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., __{B3: Sri, W2: '=5. Sesheehaéeg sdvecate}

.A.§.':i1;>.

Shri. S. Kumar (lndi)
{$0.446 A, C. T. Bee
vidyapeeta Layout
Banashankaré III Stage
Kathriguppe

Bangaiore

{By Sré. Chythanya.}<.K, Adv.)

This income Tax ApQiea_;sii""~~fi5edj"'as/s' "jthe " '

Income "Fax Act, 1961 arising' out t;sf'_ U'rde':: dated
13.12.2007 passed in. ITA.s.N'e.-SL5-9)"Bang/2086./fez" the
Assessment Year 2001502p::ay'm_g~._ tQ formutate the
substantiak questions of'_s§'aws._s¥:;:teds-._therein, aiiow the
appea! arid set__aside,.th»e=.e:'de.;f jﬁj'aVsse'd.-"by the ITAT,
Esarzgakore in gm -No. ;_'659'/'Bang;/2006 «vested 13.12.2007'
confirming the oéierstef the Appei'ia't'e--~~Commissioner and
confirm the 'dr;*ier"*pa*ss'e«dV-.1f;y~.the Assivstant Commissioner of
Income "E'E:1X,,.._CC:'_¥3;'i§3fEii {",ircte."_'--- ._2'('3'), Bangaiore.

IN :.T.2\,ms.s'7"e;j-€{?e3f:3é:2008

BETWEEI\i"*.._< "

 1, Tee Cemmisssieszer sf Em:eme--tax

A "{3e':'s'E1r'a§ C§r<:ie,  Sensing
 --»Q;:e.ens ~Re*eé
__s8a*rag'a.i«e've'eV*'s. _ V V _j..

2. »i'§'§':e £:ss%s.~%;,*ant Cemméssésmer sf
Ei:zee"';'zee4'"E"ia><
C€§E'Zv?;_i_'3§ ﬁércie ~-- 2(3)

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Queens Road
Bangaiore  APPELLANTS
CQMEVEON

(By Sré. M. V. Seshachaia, Aeivocate)
AND

Shri. H. N. Nagaraj (HUF)
No.2341, 20" Cross

K. R. Road

Banashankari II Stage
Bangaéore

 R$S_P{}_¥§§.DE!\lT_«.  -    »
vin=._§T;i\ N0.s.'f365,:§56'.E v?i_f]d 

  .

(By Sri. Cm/thanya.K.%{; and Ski.' ¥iag'fi'L.*A§§im,é'23{c'vs~;'):

Shri H.N. Nagaraj (1ndt.j',J "

N<:.~.2341, 20*" cms ' K,R. Road, Banashanka'fi'.I i "

Bangaiore. 1 ' ' RESPONDENT in ETA 572/2908 The"'1i.r_)Comxé_'fa§<";'¥'fﬁ.péaE Nos. 565, 567, 570, 572 of 2088-fiﬁed £1/'3;=_,2i<3Q>~A 10f the Income Tax Act, 1961 arising ezstwf, 0? Srtiiarﬁ {fates 13,:2.20§? passed én '1V"*-rim;:\ies';:?2"2,z8ang/:'O56, "723/$ar:g;'2€)O6¢, 7Z~<$,fBarsg/ZQQ6, '?2:§f5aVng_;2.Q$V6 for the Assessment Year 2Q01-Q2, 20$}

-..0§'3_, 1J:f.'tj,§3%3_;~é;"2~r:i;[._V2j8%i~Q2 ;"es9e<:t%ve%y graying ta farmuiate ?24;'8§e"3§.'f§§f2S§§;

E3;--§,'2,2§®? mnfirming ',€.Z§;'§f;§r":§§5§§re@:* arzé mszfirm the Gféﬁi"

£528'-.§:u§s:fa!"at§aE' quesiticfms sf Eaw Stated thereéng aééisaﬁs the apgaeaé .ar;:3§j'..--$e': aséée the aréer mgseé E3: the :"E"A"E"} 5aniga§:::e':n Em N03, ?22;'Z%a§':g/2§Q6, ?23;/Bgrgg/2636; Yzﬁfﬁangjzﬁﬂé respeatéaxeiy éateé {ﬁg a:23?e:'s $15 tﬁa ﬁaweiéaté pagseﬁ mi we ﬁgsségiani €Gmm§$§§sr:e:"' cf Eamme Tax; C&§"§€§"3§ Circée »- Sangamre, . . ---Ba"ngati:3':=e IN1.T.A.NOS.S74. 589 OF 2008 BETWEEN

1. "i'"he Commissioner of Income-taxw Centrai Circie C. R. Building Queens Road Bangalore

2. The Assistant Commzissiener-.ofA"'v._ 123come--"£"a>< _ -4 Centrai Circie -~ 2(3) ' * } C. R. Buiiding " .V ' Queens Roadf"

Bangaiere " ' APPELLANTS , ,_y;.',,w,.".A . COMMON (By Sri. M. 'J. §§_e;3_hatha1_z3;.'i;l\¢i2'o.cat'¢)"' Shri. H. 's\i. NagarjajA..(:§id~§.:j*~. No.2341, 29"" Cross ' K. R.-Road " -

8an::;:sha":*.kari II '-Stgge.

?;ES?D?'~.EDEE\ET CGMMQN {:?E'a;s and gré. Raghuram. Aﬁvs.) \m%»[% % .y . I 5 .

.'E"%€&.£4£:§mr:':% Tax ﬁsﬁpeaé §'*~EQS.§?4; 38% 5»? 2308 am féieé ;.§,.f.g*26§»~»A 3f the I:";<':§s"€':€ Tax A53, 1%: aréaing gut sf {mi-;c§? ' ' -..§?AE._A?£@5.Z?2§;'Bangj'2%G%. ﬁaieé }.3.§2.2{§§"? gaggaé En ?2;?;'§ang§ZG€}é %*"§:* iééé zésgessmeszt Yaar 2§€%2»83,.. ZQGBQ4 res§eaiéa.:eE3; graying 'Ea __f€3m"22§Ea§€ {he subgiarztiai §:.sa$E%@::s Q? Eaw giatad ihareén, aﬁew the aageai and set aséﬁe the crﬁez' ﬁ&SS€§ by the ITAT, Bangaiore ira ITA N95. 726/Bang/2906, 72.7/Bang/2006, respectiveiy dated 13.12.2007 confirjmE.r:g the orders of the Appeitate Commissioner and confimﬁ-«.:h~e order passed by the Assistant Commissioner Gf._4In¢o-me"

Tax, Ceratrat Circte « 2(3), Bangaiore. IN I.T.A.NO.592 OF 2008 BETWEEN

1. The Commissioner c\?~EVncoEr¢é?-tAa§>t.' Centrai Circie " ' ' C. R. Buitding ._ V Queens Roadv ' Bangaiore " 1

2. The Assﬁstasﬁt.C'O"mmi'ssiQh-e_r"

1nC0me~TaX"- *.;__ ~ 7 Cer?'t:*;Va"iT'i*,ér:<:le ~--"?=2"{3)'» C. Bg;Eidi§'+g--«V.__"' ' V Queeras Road $anga%~9re- _ ' AWELLANTS (B*y__:;§rE, M. V. ":';.e_§Vs'?é'acE5:'a%a, Advocate) gm gm;:;; i:%:,V%$§%§V;:v;éa: {Hum NQ'?$G§ i$4 a';~z';~;s:':a Layeu:

GEE': Bus? E's:3?:%*:§2& Raaé §ar:ga§§::e--§éS 91% Rgsmzxssgmf §§g}"'$§§g £§':3s§h§§:::af;<*%<; arzé Sgi Ragmsram, ;"i'a§as§.} "E"§'sis Emame Yax Appeai ﬁieé u/'S Zﬁﬁwgk 3? the "Enmme "§"a>< ASE); 1963. arésmg amt sf Sréez" éateﬁ 10 13.12.2633? passed in ZTA.NQ.?28/BNGKZGG6 for__ Assessment Year 2Ci00~O1 praying to formeiatef substantiai questions ef iaw stated therein, aii.ow' the

-tn-e appeai and set aside the erder passed by .i:«Ef:e_»,.

Bangaiore in HA N0. 728/ENG/2006 dated :53.1%2'.12je--o';r--.--_e'- cenfirméng the orders of the Appeiiate Cem;feis5i0'ne'r and-4 _ confirm the order passed by the As_s_:,i»s.ta_ht C'{)n'1iTi'isS:fsi{§'i*!V€:'t'. of-V "

Income Tax, Centrai Circie ~ 2(3),. i§ang_aEQre_i --. ' IN I.T.A.NOs.594. 598 OF 2003 i A BETWEEN Q V

1. The Commissioner of £nco:he~_i:at::_4. _ Cerstrai Circie " ' -- '--

C. R. Buiiding Queens Road' Bangaiore " ' Incomerfésx '

2., The AssE:s_ta:ff:ii'Cornrni4ss'i':g:in'e----r.,:3f Centrai Circie -« L?;'(3} '»..,e' C, Bt2i'idin'g'Vf-._A "

Queens Read.' " " A sangaiajeii _ " APPELLAMS « . " CQMMQN

- v ,.¢.,{:B§,e..éi"i§.'"§V'§Q-'iii Se's?é'7ai'iehVaEa; edvecete) s;?i»e._:\e s::a}%g':~g:m;~a {see} §'\ie.234'3.; 23*' {tress R, "Rees %a%t=;.ss%':ee§<er§ E3: ﬁtege

-.A?Ee_%'%.<§e§ei*e ?;E§?$§'E$§§'i-ET C§§'@§'»ii§;F*aE __:€f$*;; Sn: £%'2yt§":en\;a,§<té<.,. eee ﬁe. Regheram; Ad'=.;s,} 3.1 The Income Tax Appeaé Nes.S92, 59-4 of 2008 féied ii,/S 260-A of the income Tax Act, 1961 arising eat of Cmier dated 13.12200? passed in ETA.E\3es.738fBang;'.2.'0Q0_,v 740/Bang,/2006 for the Assessment Year 2000--.01.,'»200j2f" 3 03 respectiveéy praying to farmuiate the __--'a.ubsta7{rtEa':v--.--_'0. questions at' law stated therem, aiiew the ae__p'e~.a! am set» _ aside the order passed by the ITAT, ..Ba_ega1fore"iri_jITﬁr §\i0s.»_V "

1138/E5a;"agf2006, ?-40/Bang%200€; respVe'c:tix;r'e%\,:_' ~e<;a:ed 13.12.2007 confirming the ordets the" _Appe'is'{-at'e.'.:

Commissioner and ccsnfirm the 0?-'c1e*:< pases'ed"t}y Ethe Assistant Commésséener of Irmome Tax', Cei'ztrai._"C.ia:c!~e -- 2 ' 2(3), Bangalore.

IN I.T.A.NOs.600, 6a1€j$a2o0'a%0'V_ BETVVEEN ""' "' M

1. The Commiss_%'on__er o:f'VZ:'é'<;<§';fne"-Ata.>< V Central :

C. R. Buriiadieg 'V ' Queens'R_ea::_i'_.V "

Bang.a.1<:>r'e'=.t_ ' "

2. The"-Assistan'twC<yrte:::zi'ssic-net of Inc0me--*¥"a><;' _ " .f_ Centrat eijitreie ?--~_ 2&3} CA,--R. Bu§t"C3i5hg»_ ' Qi§,:ee'es React, V 'Ban§'a§0're """ " §PWELL!3s.NT§ ' V * Ceemem Cfxifsjy isestzaettaiaf Aﬁvecate} _\.san;a,e,seaaas{aee§ §'%:i.}\3'3%:; teabaeta Layeet " :":%§_§,'13u§i temgete tteaa aangeeeeseaeis ".eeseemeea?

0», F eeeeee '""{§y SE: Chythaeya.K,E<, and Si? Raghetam, edvsf} =.\\kfNy:..

"the Ihceme Tax Appeai Nes.6OG, 661 of 2608 _fiEed as/s 268% of the Income Tax Act, 1961 arising out of {Dreiser dated 13.12.2007 passed in ETA.Nos.Z236/*8ahgfi2_i3Q£é.,._ ?31/'Bang,/2006 fer the Assessment Year 2OG2~.£';3.,'_;;':OO'3~"

O4 respectivety praying to fermuiate the _."substaift't%3'§v~---.t ~ questions of Eaw stated therein, anew the a_pp.ea3s'e_Th~d4 seft» _ aside the order passed by the ITA"I}~».Ba4hgaI0re''tn;»IT'';+f'xv_'f\EVo.'e-V_ ' 736/Bang/2006, 731,/Bang/2806; r_es;3Ve"c_tix';*ei;:__ '--.ud_3teVd 7 13.12.2007' cenférrning the ord'ers1_A_'0*f the" _.Ap'pe'lei--a.Eé.h.:

Commissioner and confirm the otdesr pa$,s~"ed " ey 'the Assistant Cemmissiener ef :n.c'o~:~;;e Tax, Cer'1tra'§.__'€étt:¥--'e W = ' 2(3), Bangatere.

IN I.T.A,NO.6G2 OF 20e:_8*~V~s.

1, The Cornm%_ss'i'(j;Tt"ter 0;? V» Centre? Ci't':'§f1e_,1C...';'.R§' }3ta_¢_E|"<ii._!1g~.." V Queens 'R_V0a:{;i_ "

Bangati.ere"~.t_ '

2. The'Assistant'C't».:?1:ni'ssit;r:er' of Incottzeﬁax' _ "

C€F}t1"a1"CEf'Ci€ ?%_2 C72. Bu§E't§%hg<.f Qfageeehs Reeziia _ _

2.'-3ah§"eEQ%'e V AQPELLANTS <3:

(gig --.~;}';-eS'esheeha%e, Aévoeete} gee set N"...S§'aas%2§e§?:'a {met} §*~;e;.;34:, 2%" Cress " Reed, Beeeshehker: it Qgage iﬁeetgeiete RE§?€}t4§E§'~é"l?

VV "EBV S51 Chs,£§hahyat§<,K, aeé Stir Raghetarei iadvsfgz: 13

This income Tax Ageeai flied 2:/s 26{)mA ef,-.__the Income Tax Act, 1961 arising Gut of Order dated 13.12.2007? passeé in £TA.Na.?43;aaag/2006 te f0rm;u'§'a«i.e~._,_jt%ée;

substantéat questiens sf iaw stated therein; 'a1§ow"s-'t'ia:e""--s "

appeal and set aside the order passed ..b.\,z,_:"t.he~--_f£TAT,"' Bangalore in ITA N0. 743/Bang;'20O£3---_3at:edM1'3;;L2§2Q{)7"., confirming the orders of the AppeiiatesCc:rn--m"éss%--oraer.__an,;:iTf confirm the career passed by the Assigstétnﬁ Core-ryi;-ssiQn'a'f«.ef--.. Assessment Year 2063203 praying Inceme Tax, Cemtrai Circte - 2'(3__), 8ai":ga"20re.,="~ IN I.T.A.§\lO.6OS GF 2008 'V V '

1. The Commissicmer of Incomeitax V Centrai Cér<:1e*~ V ' " "

C. R. BuEEdEr:'g"g.._ ."

Queens _R.ea.d Bangatore

2. The:':Assistamj Cam m«i.ssi-Qner_' :.>f Inco'i~.f3e'~Ta'x. V "V ' "

Centra%._CErcie'~» 2~{3}_ C: R, Buifdéng M ' Q,gJe"e:;s Road ..§3;E;~ng_;_a_§:::fe §PF3ELLA?xE"§5 (V83? '_\f IE3'-es%§a<:§zaia; Advecate) Smfk 'aiéaégi .S'§zas§":éaé;*a » E$ée*23é:.:L; 23"' {Qmss .. §?<;ei??;_=¢ Rees ._Esa:':;;a5shan§<as*% E: ﬁiase Efzangaéere §ES?@E'a£§E§=.ET "(B32 sn' C%2yi:%zanya.i{'%<; sear.) 14 This Income Tax Apnea! Wed u/s 26043 of.."'the Inceme Tax Act, :96} arising out ef Order."'wr;F'e.t_e*d_ 33.12.2007 passed in ETA.No.732X8ang/2G{}§....._fer._'L-the"._ Assessment Year 2001432 praying te fere'{uiate*vf"i:he-----.e ~ substaratiai questions of Iaw stated thereig'--..a!13_hw'thee appeai and set aside the 0rder__e.a.ssed."by"'{:.he'ET'A"§";_ ' Bangalore in ITA Ne. ?32/ENG/l{.OS6_ :iet'eG'71'3__.1.2,.2OQ?7 Confirming the orders of the AppeillateiiC{3mmés3_%0:}e:='""e.h'dIi confirm the order passed by the Asséstaht Cemh5.is's§0n fr sf ' Inceme Tax, Centre? Circle - 2(_3'}.,'Beh'g3lere.'V.' IN £.T.A,NO.609 (BF 200$ BETWEEN

1. The Comméssiecmer of''1r1c0fme«te.,x ' Centrai Cire§e'§._ _" _ ' C. R. Bs.3i.!,{£i'.<1g ' ' Queens 5Roa;.d'*_ ' ' E3ang;;;_I_Qre*V.V "' 1'

2. Theléxsséstem:.C-omm'i"ssie;':er~ of Inc0r'ne»3¥"a><-- ' Centra'éw--Circ!e'¢-» gig} ' C, Buii£ﬁr§g._'V-. ' "

{}_;%;:eer.':s Ree'a."§._ V-séeg-aie~re ---------- seeeeesmss :.¥;f,..:§"esheCha§e, séveeaie} _ se."*-N, shavsmeza {HUF} ?ée.23'43{;:. ZS" Cress * ;<i.-es seas 3en;a_«she:'":§<e{% EE ﬁitege "'ea':e:e'a:ere seseeeeem '"*:;:B'y Sri, Ch3.:':ha:2;ra,E<.K; Adm} Q \ ' --vS3j1ri",V_Vi=*ii, ﬁ£..:"S.e3haChaia, gfxdvecate} ' "igsy Sréa Ch3i{ha{:'~;za,}<tE<, mfg; 15 This Income Tax Appeal filed u/'*3 260% ofrthe {meme Tax Aat, $61 arising out at C3rder."'»d_a.te"dV 1?~.12.20i3? passeﬁ Zncame Tax, Centrai Circie ~ Bah'ga§o:¢e.W, IN I.T.A.NO$.61Z, 614 BETVVEEN

1. The Commissirmer of.VZ:2.::Qtr:e--.-tcaix' Central _, C. R. Bui§di7r_:g . .

Queens RGa:."'i~--.    "  '
Bangaiore,

2. The7Assistaiiig €_T,_o'i*:<*;m'i.>:sé:Ii-0_n:%3r_' of Incehfae'mTa'x_ V . ' _ " __ Centr?z§_Circiex~e :£:fji<j:_ " "

CiR.§uﬁ§MgV _ ' Qgeszhs Rtiari ,.§E3.{§Q_&i%?§"§ ..... :%??Ei_LA?«éTS "' ""~ CQMMON é;=':'i;:;"4 grzéti'; zzgga 'Sha$§'2i:*:§:*a '»_ﬂ@,23ﬂ3g.2§"iCrGg$ *hx,§.§@§ _§.a_'§:és3hah§<az% ii ﬁgge "iT%a':z:;;:a%Q:e §;E§?{',:§*~.lG§$"x§"%'"

C€3%'i?*'i{}?§'é in IT&Jw}741ﬂ8angj2GGEwf§r theﬂ« Assessment Year 2083434 praying ta §t>r_:fm_i£aAté* ~ szsbstaritiai qiiEESiZiQr1S of iaw stated there§{;,"~--..aii3_%h; 'the-«_é appeal and set aside the O¥'d€3l'_;§3~E3SS€§§."b'y"V "!I_.ifl~i3VV':T:5gT;_ V Bahgakxe in ITA No. ?41;8ang;2@0@ dated 13 12 gag?' confirming the GFGEFS of the Appe'i'11atei:__ Cbmimiﬁaéogéeii"a.h}ii7f ccmfirm the erder passed by the As$i':~:ta:":t Comh:.is§;oné*.r Te? ' L' ; :,'~i.f.:;§'ee§*2a£i";e§a, Aaivecete} "(By 82% €hyi?2an3ze'£<...%<, Adv.) 16 The income "E"e>< Aepeal Nas.e11, em of 2e0a %';2ed u;/5 260% of the Income Tax Act, 3.961 ansing out e_'f'V{}'r-derf dated §..31i2A2-$6? easseé in 734/Bang/Z086, 13.12.2007 confirming the; _0:'der;3 'emf Assigtant Cemméseierzer of Inc"e::..:3_'*:e 'Tax;'.Ces':éire!ﬂ:Cir£ie ~ 2(3), Sengalere.

IN :.T.A.r~ac>s.e1?, 521 €5e2--@O--ee_Vf£--. ; % BETWEEN

1. The Co:~nni1%--.é,seé¢;rie_.r of'.Ee':ome_«tex' Central £:i:*<;!_e, 13%-L;'«§..Ivd'ing"_ Queens ¥e:oa'd 5., ..

Banga"lbre 'i:.

2. The ';a~,s:i:;tam: C£5';*nn7i$§S:%e§"ger of InC0me:"?a>< ' " V' ' Central Ci.r<:'§'e~';2{_.1:'-,) C; 'R, e.BuiEdé::g;_;'Qeeen$ Rage ._'§§:.ng_e%e:e ..... .. ;l?PELLﬁai'\ET$ CO?*'§§\"§O?xE é;s'«%:% $r':¢ *:.=k Eﬁi, Seeﬁjuzéeth §=éeg23'%Ea§ 222:?" Croeg Qead ' .'A§;ve,ne-sheekere E1 Siege RE§?'C§§':§§E§"-é?

aiﬁengeéere 1 CIC§§"i"§?"EQE\3 rm. N0 . 3334;-' B:e~ez;_;'£Z_{_J{16,"

?33/gang/2096 for the Assessment Year 2QG3'":C34',AVV.2'ij'G2:.""-, * {)3 reepectivety praying to fermuiate :_n.e,_"s:ub~s;t~am.ia1'~ questions of law statee therein; e§§_0»w..t.he aepe'ae£.%3and_":;et._V aside the ercier gassed by the ITAT, B_ee§;a'£e:'e én 'I753 'I"\;§j¢j;_. A' ?33;Bang/2006*, nreenspectmezy e t§'%e--n..A1Xp'pe|*Eafe ' a Commissioner and Coefirm' .tE*#'eV erde; ;3_as:~;ed._:""'e§;r 'the * ' v_§an:;T'ai<:>:€é~.,._ 17 The Income Tax Apgeai E*~§os.61?, 621 are fiied Li/5 260%. of {she Income Tax Act, 195d arigmg out of C>..r__::¥e;' dateé 13.12.2037 passad in Ii§V--'s,§iic'735/Bahgj2,{}C[;6, 736;/'E3ar1g;'20(36 fer the A$se3smeht Year 2801-82-;._"2{}'€32fi:_' G3 arespectiveiy praying is fmrmuiate the 3*i_;i§3«s:.':'a.=._rjii"{iIé--3._i_ questiaris of iaw stated therein, aiiow the awe"-:"a'§S a;:'dh."$i:3t"'--i ' aside the order pas$ed by the ITAT, Ba:":ga§r:>z?fe_jé{;'1*7I.f;i:»._§\:x;i." _ < {i a_f:e<:i'i'V., 13.12.2{}Ci? C{)l"iﬁ¥Ti'"1iﬂg the Grdierg _,_®if; ':hé:«_"mi:-;}e:aiLiat§ii' Commissioner and Cenférm the a'O$"dbi'.2FA' pa'$'§~e{§--..V'i:;5;"

73S,fBahg/'Z306, 736,/Baz2g;"2006~""'re.spe',i:t%veiy..' Assistant C(}¥T%¥T'iiSSiC}ﬂ€F of Ihcem 21:3}, Baagaiere, T_3>%:', CE!f2»t'i**-3 3 V Ci rclié 4 EN I.T.A.i\§O.622 <12? 208-8.

[§3ETW'EE§\J

1. The Ccmmigsic-her Gf'VI§'i'*:*d:¥V/'ne'*§E§.X "

Cerztrai C%:"<$.~ie'v..V _ "

C R. E3u§.Ed§in.g ' ' Queens Rr:>a_d°V ' Barigaii9%'ez "

2. The §3<.sSista¥m: C<%:*z'3ri'..%.$SA§.Qh§5r of §§'%CG¥2'3E;"'.:fT'c'i«>< ' ' V' _ ' Cezétrai C'E..rC'E'{§ hm' 'Z{3,} C; R, _gu:i§mg_ ' .:':é:ee:r';2s Rﬁaﬁ "

= ,55PE3EiLﬁa?'=iTS "':?',V"h-Eéfashachaéa, Aéimcateji (83: :':s§i. Ch3i%%;ahya,§<.K aaé Sim Raghizraiim ﬁaaiasg. .

Sn, 'iii-1.; .s"%:i:eé:E:a3 {mi} fair; 23~:é.:__; 253*' $5353 Qggﬁ

-.§a§E;3.s%1ah%<a{% ii iéiage E'~Igah§&i§r§ . §§S§7>§i=§§3>Ei'~iT "nu/ll""( 18 This Income Tax Appeat filed ufs 260--A of___ the Income Tax Act, 1961 arising cut of Order dated 13.12.2007 passed in ITA.No.742/Bang/Z006 fc;:{"««tt:e Assessment Year 2001-02 praying to ferm_u!.e4te.'_'e-the"._ substantiat questions ef iaw stated thereéng?ai§eW5ft--he-----.T ~ appeat and set aside the order passed by"'..the.A_T"ITAT,'--4_' Bangalere in ETA No. 1742/Bang/2_O.{3.6_ dated"'1-3.;:1,2';:zo07«-_ ' Cenﬁrming the orders of the AppeﬂateCenwm-issieeesf, éed 7 conﬁrm the order passed by the Ase.Esta"nt'Ceinre§ssioh»e1<ﬁt.i Income Tax, Centrat Circle -- 2(3), Baengtakore. _ "

IN E.T.A.NO.6Z5 OF 2608 BETWEEN

1. The Commissioner of Inc-o;ne'+te§< "

Centre? C£rc:1e,..C. R. Bu'i'id--én'g "

Queens Rea,r.~f"«..V » " ' Bangatore, ft ~ '

2. The :Assista'::t%,_-.{f§efeVméssiener Qf In<:or*ee-'Tax V T _ Centrai ;C%'rg:|e€:_2{.3) C. R. Buiédéng _ A ' Qu.ee.r'as R032?' " "

E;§»aé'::g;a__Etee _____ _ . Aeeetteens ':26. --v¥${1';~tK{';vT.«Seshac?ze§e, Aevocete} _ Sm V, N; ivtenjeeetn 'Vee.234~~:J, 'gem Cress ﬁeee "«.ee§;es'§:ee§<ee E: etege '' eee::ga':ere eeseeeeere 2:53; Se, CEe,»*t§2an3se3<.i--<; and Se. Regheram; eﬁvsg} 19 This Inceme Tax Apes:-ai is med U/S 260~A4v..oV§..4_ttiﬁ.e Income Tax Act, 1961 arising eat of Ordse_r'.tiatTed~«V 13.12.2307 passed in ITA.No.?3?/Bang/Z006 "thee ..

substantiat questions of Saw stated» thereé'h;~-..i'¢2§s£e"w'-the appeai and set aside the order"passe._dV.b\;« the VITAT,":

Bangaiere in ETA No. 737/ewe/2..Q0std--ated_ =§.3'.12.?;OC'r'}7T_A Conﬁrming the orders of the _Appe1£'e_te".Commi*vssieneru.er:.d confirm the order passed by th_e-Assistant CorT*r'1_r*:"aV.iiss.i_o;3er:" of , * Assessment Year ZOO3~O4 praying to formetajte Income Tax, Centre: Cércie - 2('3)}-BangaiQre--L IN I.T.A.l\EO.628 GF 2002,' A V BETWEEN H'

1. The Commissimter ef'VVIti'ca"r;1e'~t.ex Centre?

C. R. Bu:iE«c§§'r'*.g ~ 4 Queens "Roa:d'_.

Bang.a.leré'..t_" "

2. Thetvﬁxsséstan'tVC-3_rtT::ni's:siC«ner of InConi=':e~Ta><' "

CentraE"£§i%rc§e 9» _2(3j _ C, Bui1'd§.eg;».Qeeens' Rees iigngeiore ' APPELLANTS A {jay _s;--:.:_ M.»'f;"-S_es§techaia, Advocate) see Ext "s§:aF's7hine:a S\§e,23?I'é;_3; ZS" Cress Rf Rees " ,ea:":eL'seae:<ae ﬁteee §7§>3E1§a§$i'€ES RE§?®?\iDEtx§"E'"

"(By Sré. C%2ythaeye.%<ti<, ans S": Raghutem, Aevsjg 20 This Income Tax Appeai ﬁted u/s 260-15\V§}§'7._"i;§Tie Inceme Tax Act, 1961 arising out cf Order.»'g2e;te'd., 13.12.2067 passed in ETA.No.744/Bang/200_€§"""fof~...___the Assessment Year 2003-04 praying to fer--.rnu£a-te"n-ifiee_"i substantiai questions of law stated theife§:':,.._':"e.VEii:i--v§i «.i:he apeeai and set aside the order-<";:>esse<;i-_4by4 i:'5*:{«: '£"v¥-".2-'{'i"",iV.A Baragaiore in ETA No. ?44/Bang/2AO{}E;..edeted'.1'3--s1'2;2£)(}I?e. confirming the orders of the Appeiiate.Comm%ssi~:3r:ei*,an.d"~._ confirm the order passed byi%he4_Assistar1't C0m'mis,s§onejr of Income Tax, Centrai Cércie - 2{.3)';~._$anga.t_ore,AT IN I.T.A.NO.632 OF 2e0_8_ V BETWEEN 2

1. The Commisséerever oij'Inco'me.+fa[><--.. ' "

Central Circiiie '}1i:~' . .    4'  
C. R. Bi3iJd'i;*i'9..  V   * ' '
Queens F<'ead__ 

Bangs:-!ierej"q.

2. The 'Ass':s'ta'nt r;=2iVsss§.gj':"ier "of Income;-Tax ' _ Centrai 'eircie -- 2(3) C.A.E1':.. Buiid'ieg,'Qvé;ee'ns Reee §e3--nga"i'ere " .

£2PPELL&¥\%TS {B};-»§Vr§...V§v§«,e%.='.,:€es%2e<:?ze£a, Advocate) _ sri. 93; eeiéaeyénara (ewe;

x_»§*ée,2i3<§-3;,;';2Qi" Crises '=fE:ene§'s%:e:':§<er§ E: Qzeee _ $.en'ge'§e:*e eeseeeeeee

-{B332 Sn. €§'e;thaeye'E<5i<, em 8;': Regheremf Aevsxjg ' ..Sr§-..,__§V%. :i»f;E"':3..je$E":ac§":a§ai Adveceteé 21 This Income Tax Appeai fiied uxs 26cm oﬁthe Income Tax Act, 1961 arising out sf Ordeaé"*~da«:e'd' 13.12.2007 passed in ITA.N0.?39/Bang;'ZGG6""-fa;____"E:~%e§24~~. Assessment Year 2001-02 praying ta fernﬁulate'<C'{hee'":

substantiai questions of law stated therei.nv,_"'VVaE'3o14%:_the"

appeai and set aside the order.~p'ass«ed?_ by4"th'e "ETAT; Bangakore in ITA No. 739;'Bang;'2OO6AATajata?:d"_13_.3.~2.'.-2OQ7_' confirming the orders of the Appei€at'e. CommiVSs§on.er_:'a§}d-.. confirm the order eassed by the Assisi_a'nt C0rm--T:i.$sione;r Q5 Income Tax, Central Circie --~« 2-{_3'}.;V_VBanga§o:"e_. ' IN I.T.A.NOs.630, 63?,,.6 41 of-e12é§_g'e'-ee.Z BETWEEN CentraE Ciriiie '}:;= V . ~ C. R. Ba1;i§'d§;'a£i ' V V Queens 'E?_._eaié_:i Bang-a--§-ere"~~e_

1. The CommEss.!:da_er qf'VVIVﬁ'co$7*.e'--'t;ixV_

2. Thedéxssistarxt"C'o..mmEvS3_i6'ner' of Incoms3--Tax' Centrai"'[email protected] --._2(3_)"

C.~R.LBuE1e§ng;'QueTens Road §:s:1;:n;g:a'§r.>2*e " . APPELLANTS '" *" ' CQMMQN e.;E..5;..,"5'>.~i,A,:.Q N 'iii ag'}';a rate :2 a §'«ie.23?'»*§i,;:. 2%?" Crese §'{,I--§;.,. em '-'_§a.e;§':§3_§%*2a:*:§<er% :3 Stage ";=.aa':'r~;g§asere eeseemeem"

"(ey ere, C%"eg%:ha:2ye,KyK, and en, Raghéiram, Ages') €€}f'v§$%'§Q?'s§ z'."'*«.' ., ,.._;8a~;n§gfeé£.e:fe'«.._V _§ﬁ.¥:§§ 22 The income Tax Appee§ E\3Qs.630, 637, 641 fiéed ufs 260--A of the Income Tax Act, 1961 arising out of Order dated 3.312.200? passed in ITA.No.74S/Bang/2"0.£>6, M6/Bang;'20€)6, 747'/Bang;'2G€36 for the Assessment5r'ea~:_s 2031432, 2082-33, 2OG3-04 ITAT, Bangaiore En ITA NAG.» _ V 746;'Bang;'2G06, 747,'Bang/20065' a*espe4ctE\;«e_3y"«. Vdated":

13.12.2007 confirming the orders i:h_e-. "Aef;e!e.i_atee_A Commissioner and conﬁrm the (}i_'d€3E_' pass-ed". my-:.'ti=:e'~_ Assistant Commissioner of Iﬁ C€§_if'ﬁ8 Tex, Cenvtreeivyﬁifcie - , > 2(3), Barigaiore.

1N I.T.A.NO.S96 OF 2OG8.,V_A BETWEEN

1. The Commiss.i:tm__er o§f VIé9£'CoVsj1e:¥té3;»><V_ 7 ~ V' Centr"a§ Ciréile f;;j._- '' "

<:. R.11g_;;::~a.i.Vﬁ:g M Queens'R0.;';'d 4' BangaIereV"~" ' . The Assistant"€0E"nAm.isSisoeer ef Income~TaX' Cé§n't:*aE Cir{i'Ee,_-~» 2:13:

vC ,'~R;,.eBL;wi_§d§ng; Q2;--eeﬂs Read ﬂ\??ELi_§%NTS 4§=?E_§V_$; sh a ch e % ef Ad veeaie} N3 __ .

33> V Sréehar' {REJFE §?s.ie,_3;§; Eieaheeta Layee:

::'}ff:"*SeE§ Yemeée Reee 'Ba5:sa;'e§e?e-56% €219 RES?G§*«£SE§'1£"?"

Sré. Chyi:hae3:'e.K&§<; ané Sri, Reghuramf eevs.} respectively pgay-in'g-e_"Vet0~« formzﬁete the substantial questicms of law stated t'he's*eEe-,___ aiiow the appeais and set aside the order pa's$ecEj'bye' thee 7'45'/'B§'i'-'¥9 f'20.06,:.

, ,~ /x'

- A §aeg'z3"i'er"eA, 23 This lemme Tax Appeal ﬂied u/5 260--A Vofache Income Tax Act, confirm the order passed by tVh'e.4_AssEs't.avn't Comz7':£es§_one§: 9? Income Tax, Centraﬁ Circie ~ 2(-3_)';~._Bang'a§Qre.._ ' ' IN I.T.A.NO.511 OF 2008.

BETWEEN

1. The Commissitmer of;'InCt>me:¢t'a§<--,_ Centrai Circfge = C. R. Bui§d'ah"<;~«._ ' * V T Queens RQadi__ Bangalere

2. The Asst-stant Cé§mna.é$s%.Qh*er of Im:om'e;Tax ' Centrai Circie - 2(3) "

C. Buiidhinsg V QLK-':er"%s Read " TTTTT ' AWELLANTS . §Z.eé~hee%1a§a, Adveeate) we-T..

"Smi. ?~'§~:.zé<iE:a Séeédhar ..,E'x§£3..:%__§_.. Tvéiaheete Legzeari "véiiffr §%;«;§E Temeée Reee E§<is:<35*:{§;a5§e§*'e 95:.' RES?§?'éSE§\iE° T "€133; §E'§. Chyt%:anya.i<.K, arse Sré. Raghzgam, Awe.) 1961 arising out of Order"."<fa'te€ivV.¢ 1332.200? paesed in ITA.No.'?29/Bang/2006;"""fc{rf~«ﬂue Assessment Year 2OC)1-G2 praying to ferr'rj:::¥ateV'"L-t?1e'_'"* "

substantiai questiens; of Eaw stated thes*e%»:2.,..__"a§i0v;i the"

appeal and set aside the or"der.:pas.sed~'_4by. Ehe IT.AT,7.. Bangaiore in ITA N0. 729/Bang/2»OG6...daterj. "1.3--..1'2...'2.Q0.:?...I confirming the orders of the Appeilate:.CA0mm§3si-oner"a'r2.;:E"= 24 This Inceme "fax Appeai fiied :3/s 26{}-A e1"i',_"th.e Inceme Tax Act, 1961 arising out of Order-f"'d_a't.e'ti 13.12.2007 passed in ITA.No.663{Bang/2003*-fez'..___etE5se'~~. Assessment Year 200102 praying tr.) fermzaﬁate'n.'t?1e"'--."

subst.antia§ questions of Eaw stated there.in,A.V_"~~aEI'ey~;z _ti*.e"

appeai and set aside the order..p»as.sed.' by "'tE'ie E".E'__#.T,'e-._V Bangaiore in ETA Ne.663/Bang/2QO6_dated"1'3..1'2.'2GOj3_' ccmfirming the order of the Appeliatel._C'Qmm%s's§.Q:;er~_L3:)d-.. confirm the order passed by theéﬁssistarﬁ: Comméssiene:': «if Income Tax, Centra§ Circie --- 2{_3)~w..V_13an§a.|__e:*e. "

IN I.T.A.NO.582 er? 2003 BETWEEN

1. The Commissioééer e7"InCo~r}ae3-taf,<_V_ Centrai Circjie _ C. R. BuE:dii'§g_ " ' '1.

Queens Rea-(1 Bangai--0r.e"~-_

2. The Assistant'Ci;m'missi_d'ner'of §n(:0m'e--"E"ax ' ' .

Central "C.4if<;E.e -- .2('3_)"

C..P.. LBuiEdi:<1g,*Q'uee';r2s Road VE.3E':nge'i{>:je ' A??ELLAE\§T§ :{.'"';?eshaehaEa, Adveeate) Srifﬁ. :\i:'.'s3'§ara3 {Hes} %'\.%e.2';32-i:A.':. 28*; Cross mg a V. H K. R. sees _ _§eg§':a};siss:';%s:eré EE Siege ":%ss*rg§aiere R§S%f3'§§"a§§E¥"s§T ""(§y Sré. C?:y':§2ar':3za.§<.E<, and 32%. Raghuram, Advs} 25 This Income Tax Appeaﬁ is fiﬁed ufs 26D~A_."off'-tth~e Income Tax Act, 1961 arising out of kw?

V ~t'ne' 13.12.2007 passed in ETA.{$0.721/Bang;'2VQQ'6._ Assessment Year 2000-01 prayf:n'g"---to substantéai questions of law stated:'_ti2~ere'in_,"a'Eiow:"th'e~T.:

appeal and set aside the Vr»::'rd___ea* gassed Bangakne in ITA No. 721/Baﬁg[2006 oa:edf13I;2"2oo7 confirming the orders oﬁthe A-pp-e'§3at'et,.Com'miss§oher and confirm the order passed-foy..ti-we ;.f§.'s_si'4s{sriVi'T:1..t'Commissioner of Income Tax, Centsfal CircI.e_}_ '2(3.)? i_13a'ﬁ'geEor_e';' These A __be.enf hteeitétttt and reserved for judgment, r::'o,m;inVg_on'V"ForV'Vp.:f_cne'u'ncen€ent of Judgment this day, Ma'hj'ﬁia..:Ci}ei'i?§'{ Jtgtielivetfédv the foilowingit T.;g§GMENT

1.o,sueiTAjNbe5:3kéooe,512g2oes,s14;2ooe,ee4;2eo8, 4"g;f'%~«;.

'ee7;éooe;s%o;2oes,e73;2oos;yu:sgizzeoeseetemexed ageé--est V__i:ee!}:':ommon oroer of the Eeceme Tax eegeﬁiaie it""'--__VV'"1?":jE§Lz,:r2e%;...Sengeiore Bench *3' eeteo i3.i2.2§§? eeeseo in s..":f§";e..f*séAsesaé§§ to Eééfﬁgggﬁs "ﬂee eeoaze eeoeeis eecteérz te "'=»//-':

the Assessing Officer under" sectiera 271(1)(c) of the Act, is not sustainable in tam: in respect 9?' an amount shown as gift,-'--._ receéved in the orégmat return, which found to be incorrect as per maf__:e'rEai'_';V--..,_" --I~ detected in the Search and undisclosed income of the"a'ssessee? , 9. .Whether the Appeitate ;"1.Au:t_:h0EEties ":5}'erAe correct in deleting the-.._pena'Ety 'ievieti"'3:%;; the assessee filed reviseci'»:e't»;:rn dec1aj'rEs-{g eert of searched iact§;ame'.Ai':'t' en:fdef~~t.;'o bt£y""peéz'ce with the depafts':'tent'--s_Q§.tP1e.t'ttjtehalty wit! not be Eevéeafi by re!V3e.i.t1_g~.o'h of the Apex; C'?-.I't ii": 2.54;' Im' 'tvttehfirming the t~1.i'tv;jVhvC0urt in 24:1 ITR ""~_1'24-4 'whieh..hxzveisv.isigpihicabie to assessment Veer' 19V83-h8.%§"t§"_.'t~1986--87 based on the iaw e_de<:iVat*e;d"by Apex Ceurt Ea 168 Its ms, i,f":W¥"s!'.§h eghmia to be not geed Eaw after A of Expianatéen to Secs 2?1{1}(c} ef the ﬁteex Ceurt E51 233. ETR Q9?

.,__"'~;2"s.s='-.%A':ffe*t:ir":er the ;i%.eg3eiEete ﬁgztheritées wete " .. 2::erreet in aeceetéhg the exeéarsatéee effered by the essessee that the eratére meeme éetectee was eeeiares in the revises return which was facteaéiy iheotteet as the edeitiort 30 of entire endisciosed income was made by the Assessing Qfficer and eenseqeerrtiy recorded a perverse finding?

3. Apparentiy an the respondents - es_ses'sétS--.'..:E"é~edu fired their returns under SectE0r:v139 of theACtu_pVrje'rh.:t0._the"

assessment. Frdm the records, itljs r§ptiA{:edct>t"n.;3i:--.e'*seeVrt:ht cf the premises was conduct_ed__ undervhﬁectirgrré ef1th'e Act which commenced on up to 212.2004 when sratenﬁent the Act came to be recorded fVpa~'r;.eh'eihe%wa was drawn. Subsequent tr; respondents -

assessees__ twice surrendering the income A'bfr=pt:ght' the course of search. After assessment d'f__:V*7e\;riseti eetures, the assessing autherity the assessment and passee erders in the Susiﬁseduerztiy penalty preeeedirrgs came 'rte he §e§f%'eted'§' -."""The Assistant Cemreéssiener ef Eneerrre Yes

--_."r<e_:ie;CtEr*:g" 'she defense iekeh by ihe reseehderes ~» essessees ereeeeeed ire émeese er peneéeg en eéi ihe ' -rvehssessees under Sec. 51(1) {:3}:

.R4j.%'§ . .M 4. A 31

4. Aggriexsed by the order 31' imposing peeaity, appeais came to be fited before the Commissioner of Income Tax (apeeais) for the at>ev'e assessment the first appeiiate authority by common ettdetfit ~ 16.5.2606 hetd that as the assesses.::a_tt>ce*et:i'e'ti~:t}'3 V6et'jt.are_V the entire amount as their Encomle pLJ_"rs~t£a:it,to::--seaﬁ&:'h. {itt.:

crder to buy peace with the-~._depat*ttt"teht'».:ahé;f~~fo.r-5the reasons stated in the _order, f"1eVi:d.__£eVv_»yihg.' ef,VpeV:f3Ea1ty was not justified. AM the 'a--;§pea'i--s 1E§§hj3<:ut""--EjyLC§E.fferent assesses came to he atlewecf an'c'i"--a:ehaEAt?§'.._t;?tieVtfiieame to be set aside.

:4;

_3__. same, the Revenue went ﬁe appeai befQ:re_the_.EaCeh't_.e'Tax Appeilate Tribtmai in ETA Nog.;§§se~sss;'a;e7s} The tebtma: nee that penaity in .'res.eeetse.§ eetemésséee gate by the asseses fer securing the ﬁgftgvte4astV'%'e--%:%a;;e'E"Ve. §""§{}W8V@§" in teseeet at the eéft 8¥'¥'§§LNT'£S; whétih awe' fauna to he the éeeetee ef the assesses tf:e;tsaaVat ta the S€a§"C%-E? the Ytieeeeé aeheée the fteetee ef 'teepeéiate Cemmésséeeer he a Cemteee ereet datee 32 13.12.2007. Aggrieved by the said order, the Revenue is before us raising the above substantiai questions of late.

6. According to the reamed counsei for the Mr. Sheshachaia, once the ameurrt shown as gift ~ in the origéhai return was found__et.e._be i_{iee'r'r*e§;t"E1s'_'pe--r_ materiat detected in the search enti'wrj'%e~h vétas"ts_hdiAse§teseti_:

by the assessee in their retLnf'r':~._of iré'eQrzre_, tt.he'jA's.ses1sir1g w L' Officer was justified tn ievyieef.__p'e..haEt§/t "r.ar3_derf§ Section 271(1){c) of the Act. ""--,':3§;:ed'r:;§iVi§a'g --.!eamee:£ counsei, after insertion of expEa'ﬁa'té:ﬁ~,. 't'o.s.V:*3eCtior.{ :'=271(1)(t:) of the Act inzvthhetvofnftéhe_»:jt;.rjgme.htVV'ef the Apex Ceurt in 251 ITR 9§,tA,,'«utheV by the Tribune} and the Appeiéate As:r;t~mt« m'.2s"i rm 9, 24: its 124 and 168 ITR '3"2,7O"§;..;§s:,.,'eet'r-.go0dV«iéé.éi;LV ecserding te Mr. Seshaehsie, the aiV§2.eeit%et'e.:'%eritheréty Cemmittee err errer by aseeeting the exeééeee,ti.e_rij'..~e§teree by tee assesses that the eetire income eeteetegqr was secieree in tee revised retere! whieh was .'fe.e_t_:;r'e£§sg éeeerrest, eseerstrzg re the ieerrzee ttersrzseéf the ___r§efer2::e ef the reseerreents W assesses eases ségfgferertt trere =9 W. 33 tiihe to time, which is evident from the defence raised before the first appeiiate authority and the new defence raised by them before the Tribunal. ﬁn.€:ei-.nth_e expiaiiatioii-5 to Section 271(1)(c) is satisfaction of the Assessing OfficeVr,mVquesti.eri'efj'_e§éien'diiig" 'v the benefit wouid not arise. Theijefoite Commissioner of incense Tax: (Ap;3e2a*'.s')' and;v't'iiev.._o_i'de§r (ii the Tribune? ﬁe-serves to be setx'a.<§:i<ie_cehfiifhing the order of the Assessing Officer*;«._z:" _

7. As against this;-t--h.ejj!ea:dn'e_ci" Mr. Chaitanya appeaiviying foafthg Vggspjendehte ---- assessees contends that GBCE statjemVent._i}s..ijV'r=e(:'e..ajd'eci" whiie eenducting Search as provided uiiéiei? <su:b-s'ect'i't;ii (4) {if Sec:tiorz~:i32 and when i"-ah!§"i:*hqe isiueiatiens weié answered arid when the ietter Gated by aii the assesssees is ¥"8§@¥"i'€§ te in the stetemeii.t;':§'..--:§ie eejeet eiie the eereese with wiiieh Ex§§ei*ia_ii~e;ri»»Si;2) cf ﬁeetiee 2?i{§.){e} giving §ii"§i"i'Ei.,iE"'iiE'y' te eerseiis hee te he exteeéee aiiei eegeet eeiiiiet he 'is pf xi " ;

fivzietiatee. when eeteetsity in aeeieeiatieg the mateiiai en 3-4 record by the appeiiate authorities being net the gretmd of chaiieiige, the Revenue cannot question the same is his efifs cohtentioii. According te him, application; Expiarievti.c_:m_4_(*:3v) is not a question of law, which entireiy question cf fact and the same is dhetahit'with"by-.a'_':§i'ri'ei"factV4 "' finding authority and Revenue ceina'i;:'tr..agiétate. ii'i'i'i@:ﬁ'5si3AE'fii:.~.'_:

again and again. Aecording'iV_te...V.himp,'-.seai<:i'i*',:teem...,iia.*i/ingi chosen to take the st_ateri"ieiit_i:"'i-ii the rérmai or? fashion which they have takenv by'A--.pti.ttih'g--.'q~:i:'ee.tion and answer, it is binding env aEi:.'t'§'i€. have signed cenfirrhing t.hVeij'--sei'ii:e'.$"ihe questions and answets CEO net'j'r§%iat¢"i».i%...any individual persen i,e Mi'. Sritihar ar'id._4aii,V the q'u_e'5t.i_'Cns were answered fer the entire aeieiinvti"diseieis'e-ti.___ti_i,iAring the seaieii reietiiig te entire »i;a;'i*eiViy,.i_v'«?iiii<ie"*e_if:tii"e ameixit eisciesed by Mr, Sridher was ieeeeetee"«--ej:>ie'i:=.eub}eetee te tax. "iiierefere there E3 tie g §i'@i4.ii*i:.gE;"v;iVV§§"§8i1)i€ te the eeeeiieet - Revenue ie eiieiieege tee-~eée:ti'e iii the eieseht eeeeeie, 35 8* In reply; the learned counsel for the Revenue Mr. Sheshachaia has taken us through paragraphs 21, 26_and 2? of the erder of the Tr§b:.maE te centend that devr§.\{a.i4p_te.f origin ef undisdosed inceme explained by Mr. Sridhar could be at the most a__ceepted _-fer'"iw:é3jj.sVé'}fv"a.nd._ "' it cannot be an expianatien or ansx?v.er;i_"n restpect ef c5t:ﬁ'er's?1.s_:

Therefore there is nen--comp§'£an"ee of S'€tZE§ﬂ$ Otlthe Act se far as ail etheejassesSe.SV':'except M'r;'5I.'?€1ha7r. He strenuously contends 'that.. ex;3;la,natifCm 't5(2) of Section 271(5) is not ap_p%i§:able"'tb* except Sridhar if no teaser} Theifé'staten:1ent of the party re1atin§j'te~ the "is part of return 01' income. Tiit revise£i»t*eturns_fiiedﬁtzcome was not shown as income, buij»~'t:if1e*;_%' were» pt:.r§Qseiy shown as gift. Therefote the *a:pf'pewaEs,_VdeseEa:e_ te be aiiewed, §_,~%,;e;aj';*'nen eeensei fer ttte resaeeeents « assesses tn ET£§§§f nzttézer eentenes that as netiee was gévee te Prekasé: ' .'}fix§e:":e%; §:'enn, tar. sneaer en eenae ef aié the eetsens ..._<:Ef gene has géxzen the statement en 2:n2,2eee efte: eatn 36 beiiig administered to hém. Therefore it is as geod as explanation on behaif sf aii the persens pertainie~g_ to Prakash Tea Agency group. He further contends"the:t"L:'f¥d'r»/,4 N. shashindra, Smt. vam Shashiiitiia, Mi'.

have stated that statement given Mr, 2 in their absence and they abide hes by Mi'. V,E\i. Sridhar. Therefthre acE:ordiiigthe " V statement recerded imdei se.eti'ori_:'3.3'2.(f¥) df'the».v'}:'ict is as good as statement .::eiti.e;§ .//gtherwise letter dated 26.2.2QQ4::A:hve_s assessees and as such aiso.

"F.i*e'm. placed before the Court arid 23150 the siii3.mi'ss§QVhsA'ofthe teamed Cetinsel appearing fer

-'W,.,_,the':t__"':Rei;ee_ue aﬂnd ---------- -the resperidents -- assesses, Ewe _;;}mjé_i3§sievi1:s..'e€t_Vthe Act ere reéevarit fer ceesideritig the .

si.:t;ster:tée%'t:iigggzélestiens ef iew reisee in the eeei/e eeeeeis. "i.fE'hey'~evre seetéeeslﬁziej and Z«2?3;{1){e) §X§§&i"'i§{§O§'§'""(5:§t ft::.%:_is"'i_«ise1?::i te extras: the seie §é'"@¥§$é€}§'":S rtere: ﬁé 37 Sectionwlgz:

(1) Where the [Director General Gr Director] er'thg 'f,_C'iiief Commissioner or Cemmissioner] [OF Adéitionai _f..)..i_:r ».=3.<:':'c'a';:.rf»:)"rV.

Adcfitienal Commissioner] [of Joint EI>irect:':: r5" Q5' "

Cemmissioner] in consequence Qf_Enf0;'rh'a"%~ié'_:2. 'i~r'1v".VhisV passessien, has reason to believe t»Eftat --:r j; "

(a)

(b) (C) «~°'~.7 .

xxx xxx any pers0.:'i'..i_s ir":* fjG"s s§;j4es'§iz)ra ofénxf money, buiiien, jew"es":mr*o£:*} ;;>th'e%[ «;a?mab1e article or thing. and 5uch::'Vni0n ey', "%_3ui3§'vcn, jeweilery or ot:£§eé~'}:;7~xa lLsabiei ;a"r'ti<:I"c-:- .;}r'-'t'h€«s<zg repyesents either v..;§{?j:Q§l\}:f0'é* EnA<i'<"3'm'é: or property {which has : 'tiatﬁéeﬁ,.T»d'r._fJ;iauid not be, disciosed] for the "._ [email protected]'§A"a:f'."t.i§'éVﬁkrdian Incomewtax Act, 1922 of ~19"22}',: QE' this Act (herainafter in this .__seCtEVbn.._r€2i'erred ta as the undiscéosm incame '4;0 :*'-Qraperiy).

F;5v?c3*"'a::§E1er§se§ affécer may; dazféng the marge . _ j«:;:'%he Search 92* seizure; examine 0;': 03:5: any QEFSGFE, wha £3 feimé is §e Er: §a$ses$é§;'2 Q?"

gsaicmi 0;? am makg af aaagasgzt, ézéauménéa mmey; bu§§i§§2, jewaiéery 0: saw: %:&§Lsa§§a ariéaée er {hing am any giatamant made by 35::

38

such person during such examination may thereafter be used in evidence many proceeding under the Indian 1ocome--ta§<-.44'_Ar:t, 1922 (11 of 1922), or tjr1d€Ffi3'iiS [E)(DiEi!'3E3tiOn.""F(}l' the removai of doubts,:....,it_:'*r»is deciared that the examination of'Ja'rig/'«;1_e't=sor: .ig'r:der"*tiiis"'. si.ib--se<:tion may be not roereiy in "resipect ozf'-aVr1y.VbooF§e._.of-.. account, other documents or 'a.ssets"foVi.md a[s'a=rr,eso.!3t of the search, but also in respeot'i'o_xf'a1_l mette'rsV':rel:evant for the purposes of any"'i~:}vest:§atEio'§sujCo_hneetéo 'With any proceeding under the Iiodiihah"'E,:fﬁ§o:me4ttaA>riAct, 1922 (11 of 1922); or Under this . , ._

271. (1;ttititj:i:r :"[A's5ess'i_h'g']'V: Officer or the [W1 [Comrriissiorzerviiv'(}§;ptjeta4t's):j""*-[or the Commissioner] in the course or'ooe'edE..o§-siiéortder this Act, is satisfied that am' 9'er$on'!' ni '=:.{§.,f3_ ..i_><:><:><A"«... .....

{_e);."Vit:'i%j::»§e ceritjeeied the oartéceéars of his ieeoree or V§***j ioroisoee éoeecurete partieeiers er seer:

§§W§£§§f§§€g /"V rm M.» >{'}<§< 39 he may direct that such person shali pay by way 0f_...__ penaity» [Explanatieh 5. ~ Where in the ceurse of a [search in4'é:tiateci' under section 132 before the 19* day 0f;;;_ne, assessee is feund to be the owner of any m¢:;egscc, 'bui§.ie'a2..'vv..cL Vé jeweliery or other vaiuable artécie or th'ént_§'.V_(heFé?:.§tcé5'v ma V this Expianatéon referred to as aés-ey'ts;)A and the.VVasse€_eee~ ciaims that such assets; have beer_3Lac:qe.i_red.'by.t_himv?by utiiising (whoiiy or in part) hi§'i'-nc01'_he:._€ ~

(a) for any previous year wh.i'ch"'vh'ésV ezﬁd-egE.V'»'b'efore the date of the search butftthe' ivhcgxénte fer such year has not be.4?V"jj;'e' ttheﬁsaid date or, where such' re_u_tt:2_rxh.'V'i1as;'?b'teer":v-fufgaiéhed before the $356' "date,a'::§§t}'C}§V"~.§VﬁCOI'1;i.t§""'?§Vt?3S not been declared tVE1ereEn;» t

(b) fat aréiytt [§)!"E*'=J§VC§tt S yieajackivhich is to em on or after the _.date {if theweeatchtgtttthen, notwithstanding that such '4}*~ir"§£:£o:*::e §s §e;»v~:--i--a;*ed by him in any return of irsceme fe.;_:'s1Es«E:t:ie'd__en 0:' after the éate ef the search, he shah, "5'.__%etfetf""f.;tj_eVAV.t'p~z;§rpeees sf impeeitéers sf' e peeaity weer c§_aa:é5"e§'..«A{c} sf eubwsectéee {3} at thég eeetiee, ee téeemeé te have cenceaied the eattécuiare eff tzés énceme at §%.§§§'%§S§'§€§ inaccurate gsartécuéare ef Sect:

éhceme; [zmieesg 3":

(1 } (2) .\\W 40 such income is, or the transactions resulting in such income are recorded, --

(i) in a case falling under cE«e.:;'$e"ff-{;":}_V,"

before the date of the sea:'oh;,aed-ff

(ii) in a case fa§Ei{3g..u_nde:7<fI'a'ue'e '('b)4_',e.Vor3_ er before snob da.te,fl» Eh, th.e'<-bfofoéts eff account,_Ef_ any,"mei.ntainet§ him fart' any source};-f» income' at "su4eh4""ir1c'ome V is V__otherw£$.e:'~dis»r:vlese€i [Chief CGr:_§foéssiEoe~et' ' Commissioner] before t_hef'sa:éd ofl.

he.,.-§ah'--._the:' "search, makes a _seteteziﬁe-htononesf. s::1b~lgse;:ti§§5 (4) of section 132 eff-:9' §*n.o"ney, "'bu'E'i'V§on, jeweliery or other = 'valisafjie'a.;t'i1:§_e"'o:* thing found in his possession unvde':-A'r;i,_s"'cohVtro§, has been acquired out of his'ir;ceme- which has not been disciosed so far .__§e hEVs'a*e--£asr:2 of income to be fuméehed befere '«.e'«t_ii'e___ex;3§r\,2 ef time speciféee Eh {***] sub» ,,.ﬂ'-A. "§{:':i{;i'%:.?(}§"} (1) of sectiee 139, and aise seecéféee ﬁe statement the manner in wtéich seat:

éneeme ﬁxes been eeréveﬁ eeo eeys the tax; iegeiézer we ézzizereet, éf eee, in reeeeei: ef eueh ineemej 42 group by name Sri VIN. Siidhar had adméttee eaying commission for organizing the gifts. Therefore i1fi:.""i:r1e returns subsequentiy ﬂied, the expenditure in commission to an extent of 3% iii obi:aih§hg..Vsiiv_'C~i%1. g:i.Aft~sn_wes--«i i aiso ieveeied. Taking Ento CC,iE1S;':.E'dei'N_E:!'.4tii_";n"'«ﬁt?'At'h.t§Sé=;ifel'CfV§,ﬁ' assessment orders came to be passed and theee. gifts were treated as undisciosed Encome'V"iof°ti':e as;s~e_sSe--e aeici it was brought to tax. Quantiern proceedEi.:_:g i'hes reached fénaiity and same has been accepted' 'e.yVVt§1e.~a.ss'ess_e'es.

13. ;)::toVt:ee.§£i:i«ngs under Section 271{1}§{C)H efbe initiated against the respendeiits 3* the authority concerned, the assesseé s:iei'i~ie<:i fL1rn"Eshing of inaccurate particuiars or ' V' «.,;;gmcea;.h2er':i:«Aof ineohoe aeci further contended that though s--..t'it:-.e.4efs-.jt:'ti~e gifte are eii ideiitiféabie arse eveiiabie te eeitzfirrrfg.-tiiieéjgiiitsi ehégz with a view te buy eeeee Witt: the R"'*.__V"=eeeertejfieetg the same was eeeéetee as eeeisdesee "--.A%i::;*:_o_é*.:":e., eseereéeg te the seoresehtetiazee ef tee .,,_%i'§?:S§e§"3§€ii?;S -- essessees; imeeeitéoe of eeeeétig ceeeet be 43 automatic as there being no rnens tea or guiity mind an the part of the respondents to cenceal the income.

14. Ultimateiy rejecting at! the contentt«§enAs',t__"_L-tire"

authority concerned passed an order Lnttét' statements recorded during the «gf«_jTsear§ft1-_reVee_iV':' that gifts were agreed as nd*;_§enu'§'--¥}e'V--and stt¥etef<3re':*:t?§ve'V' income has been offered to t'a"t><..,d* It v€i'as"f:s«:?tne~zj oeined that the assesssee greup ntasfne._ét.ne~-r. established the existence of the donorsMet"tnehifcfVred«§.tih:dVi't_n--§ness. It was aiso oeined t%_1at"s;:t,n'e a*ssess'ee"'gfo§.j'e..hes organized non-- genuine gEf_tsT.f;>r_"tnt1e .g;fvut;.3es_e-of converting unaccounted :ncon're"aVnt§ VVb§§n_d!:§g«»'t§'rz§"«$eme inte the beaks without §;§a\ghf"n:':.nt dfutavtenly w-itnxdtan intention ef aveiding payment dies? '?ta}é.:,,,""A The' entnettétty opined that ttze matenai conﬁrms n----.tfne- n1~%.n.d; new is gniity at evesien ef tax, 13,; -tee %"@S§§§E5€§§tS * esseeses went age in aeeee§ i3e§nre"tne {ietnmisséenet ea' §§E{i§§E"%€ "Fax inneeeés}. Tne WrfjVe%s:,:a:>nd'en€:$ - assesses eentended that gift emennts were

-efifready déseiesed te the deeartment En the reseeetéve 44 returns filed before the date of Search and during the assessment preceedings and with a View to end..___the proceedings and on the understanding that no ;::aerr_é'it:h',?"L~.\.;{.i'i£i be Eevted, they agreed for subjecting ail tax. By péiacing reiiance on 251 I7FR»--9. a%.§'o.4.'_2_76v_V {TR 156 (MP), the appeiiate authority rte under Sectien 271(1)(c) c0u»§d:_°b.._e %e\ri'ed_ rnVVAt'a-,:c':rcge"'vmere ' ' income returned in revised retru-rrhrsv-is'acce;3t'edv.exre§hthough revised returns were ﬁtted.cafter§S§earch_ rra;nrc!.'subsequent to inquiries. The 4m"a.terEaIA'"f6r was disdosure of gifts to 5the"~i._rr returns ﬂied before the date (Sf ::earch='fah'd.ce'4'a«;§_d'e%§'ate authority accepted the defence thgrtt ohwh/_ '4Vir$._"or:cirer to buy peace and with an uhdershtaediréghﬂh"t--h:aVt.___A;i:e §3@E"Ea§E\; weuid be ievéed, the »a:$s»e$seVe':;:cEtgdvagreed ta frte revésed returns, According to xv": , ".th}e.'--fi'rs:t "e;'§;{;§e'~§r=%e'te azrtrreréty, he enquiries were currdtscted by "ueeéhrtrrrent and tr wee due ts candid adrrrissiurr err '::r»'.:tAt'rret~-earth ut the resuerrderzts -~ eseeeseee these grttg were trrehuétst te tax as érrcdrrre, the Apgeiéete Authdrrtr; agreed mhthttat aii the particuiars are avaiiabée érr the returrr and ta 46 have not chalienged and the said finding has reached finaiity. So far as the ether finding that no penaity couid be imposed on the unexpiaéned gifts in xifE'eis;.'{"'»t.t)f surrendering the same in the revised returns aiready recerded in the books of accounts.;..,i;Ah"eVv'i%.ever1t£e"

has came up in these appeais.

18. ﬁxpianation-5 to,' S_ectid"n_-J2"?1(1j;»{'e;itﬁepends upon the particulars found afsseeseeiiat time of Search under Seetion~'1'..'_3:2- of _a matter of fact, Explanation-S to_ SUbfASe§f_'ti--O?a"V..V '"0?":..Se'tti0n--271 was inserted by'Aan%i*endi;'nent;'«V.._'Thisnew expianation is a speciai proviséoie VVapp§icaVhie.1te"eaeee"whee assessee is found te be the A.eweer4R"cf:V any Eneéney, beliion, jeweiiery er other .°-VaE"ue'bE5et'et'i:i.e§e ervtihiiéing reveaied in the cdutse at' a Search e._':;5e;der 0? the Act, if the es-"sseeeee asserts and e¥e=E--.nfae th~e_t'4j'..tE'ée abevemeetteeed eesete Wete §€€§i.§§f"@ﬁ by eyfen"-'etiiéeieg §§i%£?"EG§§'y' er ée sari} his teeeme fer the ".u;U?r;'ea;A§.eee gzeet wttéetz hag eeeed befere the date ef tee ta'.

'~._':« ///2 __Séa§"Ch; but the return ef éeeeme fer eeeh year ties eat <51 47 been furnished before the said date er, where such return has been furnished hefore the said date, such income has not been declared in the return, the assessee .ssh:§é«l.4_l'i:=e liable for payment 0f penalty under section the Act and such income is; deemed fte" Vt_>eee_ ll"

concealed er inaccurately fumisheét referred to abeve Ef dec§areci"by'-~t.he atseesseelrl ,re*turn r L' of inceme furnished bx/__him, oVn___e';=._a'ft_er theeate Search will not erovide any lnéazralilnéty ;.tlﬁetiv"a.$sessee unless the conditéons indicated 'cla:§;;se+{2)_ of .E>tpEanatlon--S are fljlflllﬁd.

=E,;earheiil-._eotuﬁ3e'l'---for the Revenue emphasises that in ti9%5e_:>:%,eeVentI:eaee'; the conditions in €Eause~2 te Expé:-ﬁeVvatE:>r2~5V"5o'f»_S_e_§:i:len Z?1(1}(c} ef the Act are not 'f;:€§'E'?EM2.V$}E§%V€':§:§§"<.A:V'€;§.L~!§f§EEe{ja '\W1'«}t';'.

Therefere bath the aeeeiiate est gfustéﬁeé in setting eséee the meet ef g ime4e$.Et'é'%:'ge'eff eeeeltga 48

20. Learned cotmsei for the Revenues reéies upon the decision of the Apex Court in the Case ef K33. MADHUSUDHANAN ,vs. COMMISSEONER OF 1NceM,E'9tg§':<_V- (2e01)251 ITR 99 to contend that when the put to notice under Section-271 ef the Act_.that"::'if»h'/ei elees"

not prove, in the circumstances st=z3ted..ErA"efivt4?'sse.'E§<'pta'eat_ioe1,.sf that his faéiure to return his CO;-':_f_e<:t idfsrghefne was' def:-_* to fraud or hegiect, then deehaedd pr<jvis_it0i"i regarding conceaking the partict;-.l._e'r--s ef "~~§r':»c€>m_e or furnishing inaccurate particulars ef..Eh_C'€)rr':e §':LoLé'f'd, b'-edrawn. In the said case, i,d':idsh'Ebs 0Vp"ih'e'd**' that after the introduetioh of 'Exit-EeVnat4iteh'¥5€' there is no question of proof of mehs rea._d% He ai_s0;p"§ag_ies reliance on the decision of the i*~£0;j*»2"§3¥e:__S:iprerheV.{:_Q_;;rv't in the case 2;? UNION QF INDIA & »::§f'r~~s.VER$V'~,x;s';"'vQMARAMENDRA TEXTILE PRGCESSORS & {TR 2?? te eehtend that erevéséees ef SeCt'§e§"E¥i:h!5§'C éeserted wéth the Enteetéeh ef Emeeséng V' "..jt'»s*he§:«s§Aeter3: eeneéty er: eerseee aehe evaded eeyrheee 0? tex .' Cigmhdt be read to eentaérs mees see as as': esserezéet .'V€hgree§eht and there is he diseretien with the authority 49 competent to impose penalty to ievy penaity below the prescribed minimum. Their Lordships further opii'ied___that the object behind enactment of Section 271(1)(c'}_t:"i<eé3.«;i with Exptanation indicate that the said sectiert. enacted to provide for a remedy fer ioss bf"ﬁe-$%e.r1ii'eV'_'aVndV_ t"

penaity under that provisien is ci5_;?iii~';Iiatbi!i't3§:;' :"i*-hey]:

further epinecf that wilful ceh;:'e~3,.imeh't is ii_ot'..Ve:§_"e§S.e--i'it§al r L' ingredient for attracting civil iVE_.2_3__ix3'j'Ev§.t_y"w.es ie'th.ev_'Acz;1AVs-éfe in the matter of prosecution éi'n:{ie.r"Sei{<:tio'h?§;fT?'6tC of the Act. In this context, the'y_proce'etie:tt thin the case of 911.19 i\L st:i.P[eFF5'§j:;::\.j'S.~i Ct???' {at Aritbfeee M (2oo7)21o CTR (S.c)=22$V'u't!€je._:'cc>ﬁc.e;)tuaE and coiitextuai difference between and section 276-C of the Act Wave'-t0StiA'$EQ?i? :03 «.§7f§_§§_§}§aC£§S reiéance en the Ci€CESiOi"i in the cialsey e.§j::x£.§§:'t:w§ Kama euem Azst CQM§vi1SSiNER Qt .§'ii»§i{";@'§itxE'i§5£i?§<'A'te=;"V{2QO5}28? ETR 3296 teem te centeiie that ee:'%ee$é'§.eri'4§Eazetz in Exgierietien-S te Sectien 2?':-{:t}{e} is V' '.j=.§*iiea.§tt fer the §€;!"SG§%S t-"s.:'§"3@ eftet gmteitéerizig the Aligieeéetieseé énteme gay the emeeet at tax alengwtth wéhtereet, Ef any, eh such irzceme eefete the due éate and h§T;e:ct"§er';~332 ef the ﬁﬁtﬁi 50 such benefit carmot be extended to an assessee where he comes up with a plea of norravaiiability of funds for payment of tax on surrendered income. Their LQVf{f.$§"3*ari.i_}S further opined that enty circumstances tha_t;""'Cesgj'§a§.j:he expiairaed fer absoiving the payment ere"

indicated in Expianatien-6 itself. H:-§fa:s'e_ decision in the Case ef RR. MrE7"§RANT._._\'1S. <:c>»:'x%é5z\gf:.ar..':sVSI('3'_f_:\s'E7r«:

OF INCOME TAX, BANGALOF{E"-E? MR st; 386 to contend that SectEon~iA3._2#«-be{_t2gi.eVt"ce;ﬁ';j'i«ete code by itsekf, it cannot intrude Ento_.a_r§y'-.VotVhei.r ;'5':*c3.S/?3jiVe§'as of the Act. Sirnéiarty, 'c~:senot interfere with the schem--e' orvSectEon--132 or its provisions. The leareed%tcouhseiA._pEa§_'C'es reiiance on this decésion to Cee»:§§nVVétt'that vt§'2e.Vs;t_e'teme:1t given by Mr, me, Srédhaz" if »ec'cepte_§«.;e,t£I'é___be accepted eniy as 3 statement giver: by '.h--§;r«rz£*--.a:%Ve'étgzeéféhtet be ieeéﬁ ae e veﬁe statement in ee far as etE:e§'..r%s.err*aeers 9? his feméiy, Ee that eeetext; ieereee ee':;:--:t2se% eersteeee tee: i§§€%"& ﬁes te he etréet eereeééenee e? He eiaees reééeeee en the "tmreperteé eecésséee ef this Ceurt in the case ef THE maiife am §ffhve;rf_e____%;;

51 COMMISSIONER OF INCOME TAX .\/S. J. ALEXANDER in ITRC 64/1999 diseased of on 19.6.2088. in this caseethe oath was not administered as required under Sec€:ioe§"6_.of the Oaths Act. Therefere Their Lordships heid statement of the Officer concert;-e*ci,-.owh-iéﬁhiis.-VI.Ife?.ioé§d.ed_, V' without administering oath has no'p°'c*.v\iii;".'_eTr'1"T£v:iaTrT*,'«"

the eye of Eaw, it is not at ail» a:v;:*§'~~evide'm:e 'aejfd-.:h'eh'C'e"t'here " ' is no evidence to conciode teheef§he""-ﬁmoehtvvofuiihe fixed deposits; befonged to aiso oiaces reiiance on Court in the Case of 3§':v'x11<;1<::',§mr~»'IVVE TAX .vs THE SUNRIZVSE = I?x§ViSLIS'T-%§1A1i%"'n$'*:'f\§D'ICAT{-E in ITRC 246/1998 disposed' contend that if an addition Es no proper expianatéors for sueh »ede:tio..rj,'«.§€«..§£\?'e;sie amount to coeeeaiment of income and 34%;: §eshe<::§"§eEe;

"ziie-.eao':%;é:éo:s'e.§" under the Act are juetiféee in ievyieg ee:'§e§%;gs'._ 2:. eeeegeéeg 'io iise ieaeéee eoameei fee Revenue afier the éeeéeéee ie KR 53

22. The reiéed on various z"@spond@nt"s ceunsei decisions so far as Clausewz of E><;3ianat§on-S to Section» 271 of the Act.

23. He piaces reiiance on the decision ir1__.t_:He COMMISSIONER OF INCOME TA><«~1, MISHREMAL sow: » (2oo7)289 EmI-71tot§e'ntén::;it.tti":V:;:V£:.' expression 'possession' L:sed.»in.___ciaus'eV_(2) oft.E'x';;!aHnati_on'S to Section 271 is not confinedzit'o phVysioa'E* goosfsesision, but extends to other type---.__off _pc¥_V_ss€;séic.n'..ti;i:'hi_}ci'i is capable of being heid. It was_.fu.ttherV--.h;3|d'."'ttia:ti._'-zeihs iong as the assessée Comés \.£;1=.itE:.4':i«..i_i:iearz breast of his undésciosed incomeA':*e7p'resentéét§:'bt£'*;:&§s'@t'5 found to be Es': possession of the _asse'~;~ssé'r;-.=,._,vi'i£2T'Es"not d@@ETE@€f to have Qonceaieo his Er:<ioréée7--."or itzorzceaiéﬁigéarticuiars thereof péaces feééance on the oetésiorz in the cage ::;t.Cio'wtS$§omaR o9 tiataorvia TAX .::s, M: ?;éL§WéS§v%-éoétfiuﬁtéﬁté - {Z§s:'}6}2$é ER 32% (ii:-iadj: to '~,€_7o»::t.::-"ésio that we gtatements maée by the a$se§$ee outing ﬁtze course of seam': maﬁa: Sect§o::«3_32 of the Act :an be . at 54 taken note of and the expianation effered by the assessee in such statement in the opinion of the efficer Concerned is acceptabie, questiora ef imposing of penalty wQuVid_4:""npt arise. In other words, it means in the officer, if the exptanatieh is a<:<:eptabEe,-~--i:'hf:~os'Et:EenA peneity is not justified.

25. He aiso places reVfiVa':?:.<.:e ear'.-t_t"heV detii::§e.n_VVEe_.lthe case of COMMISSIONER OF T;:x..>{ .vSf: SIDIVI CHANDRU ~ (2004)13e.."itTAxM,w'.S3:?:(MAe) to contend that the statement of the-es:SeSsAee_ under Section 132(4}'iV"o%TV'thé»_.,A;{'§.}eI.§}¢>*.z{}_'ed_téffiseng of Returns by the assesseie xfcerA ttae eerE»i»et..:é$.s'essmerit year admitting targe Eneeme ane' a:!se..vpa§z'inVég"': the tax together with interest, '' V' '-.sAeett:'in5eem'te'w§£I ge't"'§%ﬁmeeiseé f§'OE'}""3 the ievy of eenaity. pieces retéaece en the deeéséen in the was avg?-~r:§;fi:.--;*»%r~:1:ss§e§2sEe. Q? E§'»iC8§v'EE TAX Jest eeeee t§::SH;e§¥§_.t?S€}EL » {mes} we tte 454 {ate}, in this Case; "V-.A?f<'e*s:e~1r"sE.§e eehtendee that theegh tee essessee meﬁe the V. .,._.statement recereeé amder Sectiee 132(4) teat amexptained beer?-aieefialed, 55 cash and unexplained jeweltery were undisclosed income, the manner in which such inceme was derived has not been disciesed in the statement and therefore infr.;r:eInity under Expfanntion 5 to Sectien 271(:L)(c)_§'rV~2e.?;;-~--:net'_ appficabie. Their Lerdships nefdthat nothing to the contrary in the statem_entlv urece.rCEed"e Section 132(4) of the Act, in' the atissefsce cf'Vé2';j:3%4_V_§pe'cific statement about the manner VtEt'r'¢«. whVich '§nc:h"'incc»me has been derived, it can' éniterriedth"t.nat"~s>nch undisciosed income was derived fro:<e....the bv-n,;s:iné.é's w:vn'.i*ch the assessee was carrying 3._:on:;1itrr»o'_r t>th:erV. s'eis'rt;'es. They further epinedtthat n1t'£chj-~.tn:.g§4drt3;fa'nc"e'should not be attached to the statenrteént .aeGUt'th"e.':fhanner in which such income has A 2}?§..VE+£ee'-..e_Eee pieces reiience en the eecéeéen in the t¥;:a?s5;2:tr«et°'_eee:':;ét :<:Aen.:eA:.et gene} axe. Aeezeteee ce'ee:e:e:e'§see ee teceee "?;'i\?<m gzeeey we ere 523 in ceee it wee nee that eseen ence in the eteternent "enéiietr Seetéen 132%}; the eeeeeeee nee eiecéesed 56 particulars ef concealed income and surrendered it for tax and tax has been paéd along with interest, Empesitien cf penalty was not warranted.

28. He places reliance on the decision COMMISSIONER OF ENCOME TAX Vs. MAH_El%£.lT)_'l'e§£xVV C::{:S4HAllH" l

-- (2098) 299 HR 305 (Guj). It was beg, l":~._jegg-.:ca--setsiihgéf there is no prescription as teV.p:)_ént oftime wheurytex' has to be paid qua amount of incomelvliietﬁered Vi2n'~-statyemegnt made under Section 132(4) efthe Acts. .lvl1E..Vy';:e's«.held it would be sufficient c0r1jpiEanceV_e_f.,Vprexisisisjnll is shown te have was completed. it was furthervlieele -2 of explanation ~ 5 itself speciﬁes pe3:r1flent'V'*eAf'-twéit tegether with interest; if any .--.,.s.,§nd'l'seetEnx;: i;h;e'l: §_egé's'§'eVtere did not stieniate any speciﬁed 7 s.._§'ln:.eVlirniifellreeyment ef taxi Referring tn Reﬁne kisnan e€ee s ?s ;:ags§er:1'tl:;2ees) 298 are 4§4{A§E}; "§°ne%:" émerdsnées V'-».nre<:ee<§V__le*é in me: that enee ineerne is eeeieree ene tax " ."':$'§i€i?"'é'GF'l Es ease; E? aeeeée erneen: te snestentéeé enrneiéenee

-__ Eeyf.§ 3£;:Ee:'; ~ ""§?I.e 57 not warranting any deniai of beneﬁt under Explanation S of Section 271(:L)(e) of the Act.

29. He further pﬁaces reliance On the decision'IE:n"»the case Of COMMISSIONER OF INCOME TAX .vs. OOEL- (2005) 149 TAXMAN 578(ALL.). ifcgaée, Search was conducted in the res%d;7::nti;'a:§4T:a;<;'%;~;e'ii_a~e 'bs.;s:IéL:né$5:i' premises of the assessee in_4whic?I._<':;ash, Ij.ewe:!'Eery'";ant? other valuable articies and ttI"§"i*I~Q_V§' Were"*Eot_j'r1Ii and seized and subsequentiy, a5%4é's_see'VAVdeVotI'er_eI;f"~.his Ineorne under Section 132(4) and nj_o_\}e_d settlement.

Assess;'mentt'II~.*§'as tiemgjéetled Onwdisciosed income of the assesses; and .VV.t'nfeV:e'a~fteIr. Oersaity proceedings were initiated. o:Ifa<:'t-s tfonditions Eaid dowe In Exeianation .' V' WS(2II:I.Cm:,,,'$e€:tEOII 2.1'?'i"{'ié}I{c} were fuéféiied and ne OeIIa§ty was Loreshépe tzeie that tine Oagic toea or Ef'%At\';r°;§'éi'§f}§7'§~ Oizréézté Orovéﬁéng Exeianatéon SQ} OI" gectéen 2?I{Z.§v{_I§§ Ee to avoid éétégatéen by tee Seoertreent ens 'IO "',gve.%:_f:tze mexémem tex at the eertéeeé; Item the Oereon "»;z'"\;sV« ' __§;';»°§'¥QS€ business ee Iazeii as reeéeeetéaé Oreméges are 60 the same postuiates that iréappropriate words and paragraphs were to be deieted, but theav. same had not been dame. Thus, the Assassinjg.':'_1"V;~ Officer himseif was not sure as to wheti*iér 3 had proceeded on the basis that_the_"aé'S'aa.$eé"' had conceaied his income 0%=.A:he:-haajéi inaccurate particuiars. _Even"-.b»é-fore ;§.;t,.:'tv'né teamed Additiorwai Seiigitor Gene':'aA1[v§ii3VE'fé"' S piacing the orderfpf assess}f'n.e:';vt._viaidtemphaéizés that he had deait xzx{it~h_ bacth;rthe..setL:~at;enst

84. The impugned»._Qrd§.;<{'~.tj:t':§éVréfbfe'¥ suffers from ra9_'?14'5{;:9»i5i§6?5:t§0ei;.'bf was aiso bound? 4to_..'CvQ.fﬁ"§}iy §'r_i'r:+::';:sfes of naturai juSti'c;e,: :'[j$eéé:'§'?¥i'a§a'aa'rtlrgéasturévai Co. Ltd., v. CIT {'2aoe3.o']2.Sectt.;%:s]tt;a[ttat. t ~ 33¢ 'iiettafvisté _a'iAac»e.s§'1;reEiance an the decision in the caseﬁffttttamrxéiraaaicmkza or: '£NC§¥'4E TAX; AHEVEEESABAQ a.x;a..t§<§:§,:..aa:t:t;g»t _?E""§""F€GPROBLJCTS gag LIMITED - {20:s}322 hfa.%a:'§a';.«at:~:_e:~§s;%é it is heééi as tméefi . AV xxx xxx The baséa raaaea way _ §'a--r;E§§s*a Siiéa at §h;'*aff'a aage iauaraﬁ ssaraa _?.--'9vem,s§ad by this Court in EhEi§"3:"}"§&¥'§€§€'§ "§"e:~<:tEEe Procassars' cage {sL2::::'a}, was that agceraing ts 61 this Court the effect and difference between section 271(1)(c) and section 276C of the Act.-"3 was Eost sight est in case of Déiie N. ShrefT~~:.f"--«.V"'* (supra). However, it must be pointed cxi,:'tl'_:th"a'tV»Vfjf:_". -1' in Dharamendra Textiie PFOC€SSDEfS.f,V_u_."C3S'5:V. ._ (supra), no fauit was found ';«.iith"the 'irea.s3hie.g in in the decision in Diiip N, Shr:C~ff's..'_?:a'ée--1(::Lfp.{§i};V where the Court expEainied_..Vthe iirhieening'v:ef..;:h,eW terms "conceai"' and "ina%iit;*:;i.'tate". V'I~':. ehiy the uitimate infere:}xc:e Eni"EJi'§E@o5' F§3";'e.5hr0fAf'S"*a:a?5e (supra) to the effe"et-.t'i1aEe-etneihe.ife'a_was an essentiai i;3_gredEentV:h_for'-ti=iie under section 2'7i{:i}(c);i._f:h:at""the in Diiip N. S h r0ff::"S" re} fed.

He aiV{5c':'j'Vpi§ace4S=_i9e'Ei_er§ce an the decision in the Case or i\iié'\.~i{<_ iso§;z=.%r'i~%;1V;:imes. co. .\/5, COMMISSIONER ﬂee }f»§€iQQ:§'§EVvTA:>.{ .{.2QCse§ 282 we e42 {egg} wherein when th;e"e.rGe2_feif':ih"e ._a:;t§':orEty cencerned eheweé that he c§eer~ art'hf?-me;egheééei'Vheee zeached ae te whether eeeeéty eeeer '.Vse€t§ee.. V'2ff;i{_§i}{e} wee being Eeazéee for ceheeeémeet ef' '..f;>ertié'::i;:Ee:"§ e?" §F"%{i§"3§"E"'E§ by eggeeeee er whether $3'; ' Eheccurete eatzieuierg 0%" Eneeme hae been §§.§i'i"i§Si'§@§g area:

peeeity some net be sustained.

=\\J§, 62

35. Accordéng ':0 the Eearned coamsei for the Revenue, clause-2 to Expianatiorz S of SectEon~271{_1.)(c) can be divided irate five parts as mentioned below:

1. He (assessee) in the course 01' sea.A;*eh VA ' makes a statement under sub~se*cti.e:n » ' 4 of sectien-132, ' " "V

2. Thai: any ITlOﬂ€Y,."b§jmOﬁVg.j€iV€!§E'f7'y;"' ' other valuabie art'ivc§:Vee.0r th'g~n.g'v«frj.1JnCi.» in his P'§ssession:e--r Lj":"sd're*:reAhis <f0'ntro.E7 has been aeq:{:E_re'd emf <§'f.VIfzvis{'ie:3_come.

3. Which (intdrne) Ahjas MM been gi§_.g',cI{§e$'e,€5 . se ifer E'rr. t-hue"""return of W fumE§i"2ed before the A " ._ e'xpi%y;."ef t§.r}9€e,,Sg:eCEfied in sub-seC.tien 1 9f VSeet.i.o"ryf_i.'e39.

Ame"'aE3Q__vspecifée5 in the statement , {he manner in which such income has 9' ijeeie éerived, ..__"'§f}fand gays the tax iegeﬁéer wééth A irﬁcefeﬁi if any in resgee: ef sea'? %§"§{Z§§'§?'§§= , W A' _ 63

36. Learned ceunsel for the Revenue contendstlnat if tax together with interest, if any in respect income is not paid, as stated above, no benefit extended. In order te Uf'idef::'3'?:E':£'Id' AV explanation given by the assessee,1"'Qne_' hes to statement given by the aseeésee. /§\ceQlf<§:Eré'{_:3_:"t<3w the learned counsel, 132. statemenlt----z«ltee. gjéyen '<;~vrf1e,..!'51r. X/.E\E. Sridhar is applicable orléiyllto 'to other family members as me ._salcf_'Allletatl-en*jlee't--.V_deeded'hot cover the statement H »

37. hstetement recorded under sectEon~?13V_2'(4),' x.:§eA:.ljVmte._:'t'hat eath was administered t0 the depeeetit Stéldhar en 2"2Z.2,2004. It is in the °=fet:9e .0?"eeestéeesﬂmend answerst The effécer puts a in a particular way and the deeersent We tE'1~e.ei':*:ewe;: "me etetemefzt 9% Eve. eke, enemy .u""'--__VvV"*:§Aatedz '.?..'.1?".2§ZQ%e~ is eieeed er: ;#€€{EE'@s the eetéee ?e:'

--.§eee.::ieEe§ we etetemee: ée dated E?,2§2§8e %"=f?§@f"€§§"§ E: ée ..._eteted that Mr, %f.l'~aé, Sridher wee redeéred te eereeeewg" 64

attend in respect ef proceedings in the case of M13 Prakash Tea Agency Group. Question No.4 statement pertains to undisclosed income of! Sridhar, his business and his famiiYg'mer§":'bers'_;v 2 he 'h_as,," "' given the detaiis not ohiy reiatirig other famity members. He refers': to dated 26.2.2004 signeo by which was aéready S{ib!3'3ittVe"c'_;E..V:t"giZ_0gti'3:.§3;. 'C'ogtf:eer{3ed authorities indicating that at? the aV;~g.:w,ea'E;§}'t\véd;%Igoentioned. He has stated_ in which the incomevnxess of the famiiy. He has aiso' the income were shown in the respeVCt.E4x.khe.grett_;the it is offered for taxation in the :*es»;;3=:§ctjii2e yeofs-wi§}___§h,e hands of the coheemeé gersoos. .,aisvo".a4::{s'w_ers the question 940,6 sagzéeg that the moose: 'shoasgotvageiost tvtfs erakash "§'ee Agency Es oat of téseéttiogcomeétof the tea oeséoess of the férm eoo the Eoeome séieego "ox; ésém eno rvtr, §Ezes§'3%eei;'°a gs the ozofesséeoeé égeeéoe of tee testing aoo simiéorigz the iecome reeeiveo by 65 others is en accettnt ef undisclosed income earned by them.

38. Appareetfy the eath weuid be edministeredtayv the depohent by the officer concerned department. It is at the option o_f...th_e co_n'ee't'e:e;d'Vb~ff§'cervs-V_ such statement would be recerdeld, 1'35'ed'.stetem'e.htt..i§.t.i recorded under section 132(é'$_)"'-Qf other: is no procedure to compet the offiCelk=.td~r_VeCo%d"etaterhents of ah other persons. Thdudh. teaff.h§3d""-tft3u'i"u$el for Revenue contends that E_:1--di_vidL,:~a'I"hi:Stices."=.wete dsehnt, we do not have uS.-- VWThe very questions and answers"::£r%'d%er'$.eCttie.hV'i.:§'2{e) indicate the depehent was asked..dLete'i'4%'s._:eertvaEhi"hgé"'.eot eniy to himseéf but aésd ali h'-ettiezl 5t'am':'§§{ reeeéhhevzs, It is not the case ef the ~..e7e§Va5r:%téee%j:'t'%'eye: other than the statement ef ¥'*'Eé'. mt, S§rs*t§__hezj..- eee ether etetement tees tecerded eedet Seetiee f't32{e§»,et2d it is in exésteeeet "there is eeiy ene stetemeet %£.€'*é. eeeee: teeetded tstsdet Seettee 132%} eee .__eheetsed be 3 ether eeseseeeet es e eeettet ef feet; Fer, 66 N. Shashihdra, Smt. Vani Shashihdra and Srht. Muktha Sridhar at the end of the statement cf Mr. Viki. Sricihar have aiso stated that the said statement was their presence and they abide by what has . Mr. \/ZN. Sridhar. During the searc_h...p;fQceedVihg's'f§et'ween--_ 6.1.2004 and 27.2.2004, the statemefrai:'ofii»v.'ii.;:;" E3i*iV:fi'itxa§*1.i.:

was recorded. The mariner"ih"'--aghichA'~the .Cg_tJi'<C;2S'Ci£jii'vS-...WEE"@ put to this depohent i;_adEcates..._t:h~at'he v\}as.e;<pAet:ted to answer for himseif ahdiiahiThise_fa,h:;§i§i'Eiéernberst It wouid be at the optiohi'-o_f the""dffie'et"a;'h.at 'Visas he asked by way of questjie4h'v__jaiQ.uEd_<' bjeiatmtihe option of the deponeht '=whatV"Vshj'etjid,vébeideposed. If the depoheht had made cEea"r».that was ahiy on his behalf and not Eorv_~aVthei' farriii'3;?V.v:;ff;_e;:":Eaers, he weuid hat have made isvtaitesmwiti'e§€1;«i__a%hi:2g the detaiis of etherst Qnce the :ah::ereee"."eafié:=:er as' the aeaarieieht chase to racers the statéeaaeatin the aeave fashéae iasieatihg that air. 'are, V' "..f=Sr'ét§%j§at"ha::t ta aesieer aii the aeesziens ea aehaif af if-taiéash Tea Agency ﬁteua. new they caahat tam sauna' wand say the detaiis given in the statemerit at' Mr, Xi.i\i, 67 Sridhar under sectien 132(4) heids good only for Mr. V.N. Sridhar and not for others. It was the concerned officer whcs recorded this statement who has to expiain did not choose to record the statement of othefeﬁs. )- chosen to discharge the duty of rec.or_d4ing_*'th'e"' it"

under section 132(4) in the ab:'o've1'_"faishiiio.ﬁ,* Revenue Cannot find faultv._v:ik=,ti.th "time _i assessees contending it Even otherwise, ietter by ail the assessees whicniﬁes Statement is signed by eli-(thee is made to thisaietter but at severai piaces in the statement" 132(4).

it V'i's"~inQ_~.5:_.weEi settied that the meme tea *:fe§:5:;"di.ijig<::}:€'t:ea§éng and §%'iaCCE.Ei'8E€ eerticuiers need me: 'tied."estVeei-ﬁshes)by the depeiteeenti it is eise tie: in dise4"u%;eV"'t.het the immunity frem imeesiiig eenaity ezxeiieeie ,.ﬁ.:.:iri€§'ei* {€530 Ciedses Q2? Exeieeetiee {E} zen be extended te 'i"8S§Gﬁd€§"i§:S W assesses depending deer: the facts and 68 circumstances of each case if the explanation offered is to the satisfaction of the officer concerned. This Court___cen refer to the facts onfy if the Tribunai er':

proceeded to give a perverse finding. In tire case, we are not faced with such _a...si,tuatE::3ii.'""--:1fhe"'fé§'ctg»i. V "' have to be referred because of the.éste_'ne'iV of'th'e_:'ReQei*mVé1.i_i in these apgseals contending girlatemeiit of Mr. \/.N. Sridharf .caniiot..fmi;e_ 'iieycteriderf other responderits -- assesseég'V:aﬁeféerei-.';iori'eEvt;iiVin.gV the search, a deciaration wasebtained' and surrender made vide the under section 132(4) of the Act1».__Th,eVV¥3eei'r;ii eeommeiiced on 6.1.2804 and the stavteirieiit uricier«isve5_e_tiéori 132(4) or the Act was obteirzee, ri,,im;ie: .t_hes'e,ft:itijcumstances, nateraiiy the assessee weuié S:§C;a.i"§'~"{i"'2ii'i§{.ii'¥§A._i=§L;§'1&}£ if e deeieretion is riieee tirieer seetiee 132%..) "eEe'i*'i§ eiitii tiie taxes teeetiier with iiiiiereet eeyeeie V' "..f..i3e'i:;seieg'rie eeneiiig ifiiﬁiiix tie i:"'i'i§§S€§t Effie eeeertriierit Aiiigetifie eise ee keen te get eeeieietieri tirieer eeetioiz if 332(4) eo es to ceiieci; tax and avoié iitigetiee, Qiily ieitti 69 this view, the exception was created in Explanation S to Sectieh 271.(1){c) under ciauses (3.) and (2) tea give immunity tie assessee from levy ef genalty.

course of search, if the assessee sts:':'er"idereé__the ~ agreeing to pay the tax and ihterest..a_ni:§ ife§{'pE:éihe'ti~0j'1..is,_ given to the satisfaction of the offieer (;'t3h::er'i:.ed~,_:é3ss'e:sisee1.i_: would be under the impressi3oh"-~t.hatithie'V:'pehalttrA~~.i;fqe.;.;VlVd«w'i be levied which would be;__subje<;t..4.lt§..:e><vp»ELanetg§%icffvéred. In the present case, r"@coVré1"g...V:'"re.vee3Viv:.th.a4t"-tE}e'u.nexpiaihed gifts were treated such gifts is recorded eseeunts which were discioseti "i As a matter gf fact, after sutrenderhgii'E:hexE:}ee§"¥'ie;_"..'ithey offered the said income to tag» with' Emtegfest and ii'? fact they have paié the tax 'a§Vrie_§::te'restVé"ot: such income. We aiso note that agar: frem' suis<7eL:eé:A'eVting the gifts se received as ineemef the Q assesses' have Si,§?'?'"8§"£§€i'€ﬁ the exeenéiture iiiﬁufféﬁ in V' tn'e'-.fe§'s*e. ef ttemmissées fer ewehgezg sash gifts, 'ftéés aigestiltecl in émsesétieh sf gsemeity on the ameueé 70 surrendered as commission and the assessees have not chalienged the same.

«<10. In View of the above discussion and reas'ohf§'n:g7',.A' we are of the opinion that aii the amounts refe:rred::V'to" "

gifts were surrendered by assessees »offer.%n§VV"tono59 Subsequentiy tax was aiso paid a{o'iri:gx%§%_ii:it:'iV revised retu ms were filed. in-_tha_t vie'w.__o¥ the.:rn.st'ter,'°we are of the opinion the;...suEostVan--tiéE-.q'tiestioh's-ha.ve to be answered against theiiéﬂevesznfei.andfavour of the Accoi'd7EngEy;?.appee_iVs are dismissed' Ségf"

EEEQE Séfs §§§?:§

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