ITAT held that the penalty proceedings u/s 271(1)(c) are...

ITAT held that the penalty proceedings u/s 271(1)(c) are vitiated due to non-striking of irrelevant limbs in the show cause notice, which violates principles of natural justice. The tribunal found the omnibus notice demonstrated non-application of mind by the Assessing Officer. Despite voluntary disclosure of additional income post-survey, the assessee failed to establish unintentional concealment. Relying on precedent, the tribunal concluded that mere surrender of income does not automatically absolve penalty proceedings. Consequently, the appeal was dismissed, upholding the penalty levied by the lower authorities.

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