TaxTMI 
TaxTMI 
2011 (3) TMI 602
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....:- "1. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was right in deleting the penalty imposed u/s 271(1)(c) without appreciating that the act of disclosing the concealed income was not voluntary but consequent upon the survey operation u/s 133A of the I.T. Act, 1961 wherein several fallacies and discrepancies were detected and as a result thereof the assessee revised his Income Tax Return and surrendered the amount of Rs.15,00,000/-? 2. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was right in deleting the penalty imposed u/s 271(1)(c) without appreciating that disclosure of concealed income was consequent upon the survey operation when during the course o....
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....der made by the assessee. However, the AO has not uttered a single word in the assessment order to say that there was any concealment of income of assessee having noticed by the survey team or by the AO himself. The offer of additional income of Rs.15 Lakhs was made to buy peace at the time of survey in order to avoid the harassment at the hands of the survey team. Even after surrender, all kinds of enquiries were made by the survey team as well as by the AO while framing assessment on thebasis of seized documents, books of account, vouchers etc. maintained by the assessee, and after thorough enquiry, the income of the business was accepted at original return income alongwith the additional income offered by the assessee. The AO has imposed....
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....shing of inaccurate particulars was simply a mistake and not a deliberate attempt to evade tax. Hon'ble Supreme Court in the case of Suresh Chand Mittal - 251 ITR 9 observed that where assessee has filed revised return showing higher income and the assessee has surrendered the income after persistence queries by the AO and where revised return has been regularized by the Revenue, explanation of the assessee that he has declared additional income to buy peach of mind and to come out of waxed litigation could be treated as bona-fide, accordingly levy of penalty u/s 271(1)(c) was held to be not justified. In the instant case before us, as per the surrender made by the assessee, a revised return was filed and which has been accepted as it is wi....