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2014 (1) TMI 128 - ITAT HYDERABADPenalty u/s 271(1)(c) - Held that:- The assessee has filed return of income in response to notice u/s 148 - Following MAK Data (P.) Ltd. V. CIT [2013 (11) TMI 14 - SUPREME COURT] - The voluntary disclosure does not free the assessee from the mischief of penal proceedings under section 271(1)(c) - The law does not provide that when an assessee makes a voluntary disclosure of his concealed income, he has to be absolved from penalty - The surrender of income in this case was not voluntary in the sense that the offer of surrender was made in view of detection made by the Assessing Officer in the survey conducted - The Assessee had not given any reasonable explanation for not offering the income he had offered in the return filed pursuant to the Notice issued u/s 148 - Such income offered in the return filed is concealed income and exigible to penalty u/s 271(1)(c). Quantum of concealed income - Held that:- Only income which was returned in the return filed by the Assessee should be considered as concealed income - In the reassessment the AO has accepted the turnover and depreciation as returned by the Assessee - The additions made by the Assessing Officer in the reassessment order is merely based on his estimate that profitability should be at 8% in the place of the profits offered by the Assessee - This is merely an adhoc estimate made by the AO without any cogent reason for adopting such percentage - The issue was restored to the files of AO to determine the income eligible for penalty at the income returned by the Assessee in his return of income filed on 5.10.2009 and re-work and levy minimum penalty.
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