Hye to all my professional friends,
Before going to my question, I would like to brush up subject knowledge
Section 68 – Cash Credits
Section 69 – Unexplained Investments
Section 69C – Unexplained Expenditures
In respect of above sections, after reading ICAI module, I feel the provisions are OK since an assessee has made some expenses / investments & it is considered as an Income. Hence, it is like a penalty.
BUT MY QUESTION IS IN RESPECT OF –
SECTION 69A – UNEXPLAINED MONEY ETC.
IS THERE ANY PROVISION OF PENALTY IN RESPECT OF SECTION 69A ?
Consider an example of Mr. A ---
(IF IT IS ASSUMED THERE IS NO PENALTY IN RESPECT OF SEC. 69A)
Mr. A got Rs. 10,000/- which he didn’t disclose. Two situations would happen –
Situation 1) Assessing Officer doesn’t disclose that amount – In this situation Mr. A would enjoy the amount without any tax.
Situation 2) Assessing Officer disclose that amount – He will treat that amount as an Income, which in any way Mr. A could do. So, what is harm to Mr. A here ?
If he is enough fortunate, he will enjoy the amount without tax. But, even if is unfortunate & got trapped, he will be left with actual income he has earned with no penalty.
SO, WILL ANYBODY TELL ME WHETHER THERE IS ANY PENALTY KINDA PROVISION IN RESPECT OF SECTION 69A ?
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