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2013 (9) TMI 804 - ALLAHABAD HIGH COURTPenalty u/s 271(1)(c) of the Income Tax Act – Held that:- Reliance has been placed upon the case of CIT vs. Suresh Chandra Mittal; [2001 (6) TMI 63 - SUPREME Court], wherein it was held that if the assessee had offered additional income to buy peace of mind and to avoid litigation, penalty under section 271(1)(c) of the Act could not be levied. In the instant case, there is no malafide intention on the part of the assessee and the A.O. has not brought any evidence on record to prove that there was concealment of income. Before surrender, the A.O. and the assessee have reached to a compromise that no penal action be taken in the instant case but the A.O. has levied the penalty without discovering any new facts. The gift given by one Sri Mohd. Shoaib was accepted by the A.O. without taking any action. Thus, the surrender was on "agreed basis" as per the ratio laid down by this Court in the case of Commissioner of Income Tax vs. Saran Khandsari Sugar Works [1999 (9) TMI 15 - ALLAHABAD High Court]. Moreover, in the instant case, the A.O. did not ask about the amount of sale consideration minus gift in question – Decided in favor of Assessee.
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