TaxTMI 
TaxTMI 
2017 (7) TMI 1174
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....rt while admitting the matter framed the following question of law:- "Whether the Tribunal was legally justified in cancelling the penalty imposed u/s 271(1)(c) by the Assessing Officer specifically when the assessee filed revised computation of income during the course of assessment proceedings by surrendering a sum of Rs. 1.50 crores on account of unverified creditors and Rs. 85,500/- on account of wrong claim of deduction u/s 80G?" 3. Counsel for the appellant contended that it is a serious case where return was filed on 1st November, 2007 and 25th December, 2008 and survey was conducted on 25th November, 2009 and disclosure was made for the assessment year 2007-08 in 2 crore, for 2008-09, 5 crores and for 2009-10, 1 crore in....
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.... 4.3 which reads as under:- "4.3. I have gone through the penalty order as well as submission of the assessee and cases relied upon, the assessee originally surrendered Rs. 2 Crore which was finally revised in computation of income at Rs. 1.5 Crore on adhoc basis without reference to any specific creditor/employee. The list of creditor of Rs. 1.5 Crore was not identified by the AO. Further, this liability paid by the assessee subsequently as the old items of the installation has to be deposited with JVVNL. The JVVNL also releases the payment after verifying the inventory. The payments to either creditor or the employee were made subsequently when payment received from JVVNL. The assessee has filed a liability chart of unpaid salary....
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.... matter must be considered afresh from an angle different from assessment. The AO did not gather any incriminating material during the course of survey or during post survey inquiry. By mare surrendering the additional income does not amount to concealed income or inaccurate particulars. Therefore, penalty imposed by the AO of Rs. 50,77,800/- is deleted." 5. Counsel for the appellant has relied upon the decision of Gujarat High Court in case of LMP Precision Engineering. Co. Ltd. vs. Deputy Commissioner of Income Tax reported in [2011] 330 ITR 93 (Guj.), in our considered opinion in view of the facts which are narrated in para 2 as under:- "2. The assessment years in question are 1985-86, 1986-87 and 1987-88. The respective acco....
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.... was made in view of detection made by the AO in the search conducted in the sister concern of the Assessee. In that situation, it cannot be said that the surrender of income was voluntary. AO during the course of assessment proceedings has noticed that certain documents comprising of share application forms, bank statements, memorandum of association of companies, affidavits, copies of Income Tax Returns and assessment orders and blank share transfer deeds duly signed, have been impounded in the course of survey proceedings Under Section 133A conducted on 16.12.2003, in the case of a sister concern of the Assessee. The survey was conducted more than 10 months before the Assessee filed its return of income. Had it been the intention of the ....