|QUERY:||Many times assessee declare income during the course of assessment to buy peace and to avoid litigation. The judgment of the Supreme Court in the case of Sir Shadi Lal Sugar & General Mills v. CIT 168 ITR 705 (SC)] was in favour which said that there can be hundred & one reasons for such disclosure. Recently, the Supreme Court in case of Mak Data Pvt. Ltd. v. CIT 358 ITR 393(SC) has adversely commented on such disclosure to buy peace and avoid litigation etc. and said that a voluntary disclosure does not release the assessee from the mischief of the penalty proceedings u/s. 271(1)(c). What is the exact position in law?|
|ANSWER:||Click here to read the full answer of the expert|
|EXPERT:||CA. H. N. Motiwalla|
|CATCH WORDS:||concealment, Penalty|
The Supreme Court in Sir Shadi Lal Sugar & General Mills Ltd. v. CIT [168 ITR 705] had held that the assessee agreeing to addition to his income, does not follow that the amount agreed to be added was concealed income.