Daily Archives: October 31, 2013


MAK Data P. Ltd vs. CIT [CIVIL APPEAL NO. 9772 OF 2013 (dated 30/10/2013)] – Supreme Court Background: Assessee filed his return of income for the AY 2004-05 declaring an income of Rs.16,17,040. During the course of assessment proceedings, AO sought specific information regarding the documents pertaining to share applications found in the course of survey, particularly, bank transfer deeds signed by persons, who had applied for the shares. The assessee made an offer to surrender a sum of Rs.40.74 lakhs with a view to avoid litigation and buy peace and to make an amicable settlement of the dispute.  AO after verifying the details and calculations of the share application money completed the assessment and a sum of Rs.40,74,000/- was brought to tax, as “income from other sources”. The department initiated penalty proceedings for concealment of income and not furnishing true particulars of its income under Section 271(1)(c) of the Income Tax Act and imposed a penalty of Rs.14,61,547. The assessee challenged that order before the CIT (Appeals) which was dismissed. 

Income offered to “buy peace” no longer a pretence to avoid penalty – Supreme Court