Voluntary deposit prior to notice leads to deletion of penalties when excess refund is repaid and revised return filed.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Assessee claimed excess deduction under income from house property and received an excess refund; assessee voluntarily deposited the excess refund with interest and filed revised computations before issuance of notice u/s.148. Tribunal applied the principle that voluntary deposit of tax and interest prior to issuance of notice and disclosure of correct income in revised returns negates the basis for imposing penalty; accordingly the penalties under 271(1)(c) and 270A were deleted on the facts and in line with prior similar decisions where the excess refund was repaid before notice.....