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2016 (4) TMI 850 - ITAT CHENNAIPenalty u/s.271(1) (c) - assessee has voluntarily accepted and agreed for addition and paid taxes - Held that:- Additions are made on the submissions recorded during the survey operations u/s.133A of the Act and does not have evidential value without any incriminating documents supporting the statements and we rely on the jurisdictional High Court decision of CIT vs. S. Khader Khan Son [2007 (7) TMI 182 - MADRAS HIGH COURT] and the assessee in penalty proceedings submitted that it a regular practice as the textile business for the seller to send the goods first and invoice would be received in weeks time. The survey was conducted during the Diwali season and the firm has ordered large quantity of stocks and such stock of goods were received only one day prior to the date of survey and due to which the assessee could not tally the stock on date of survey and also assessee voluntarily offered additional income of 1,50,000/-. In order to buy peace with the department and avoid protracted litigation the assessee has paid taxes and not filed appeal against the order u/sec.143(3) of the Act, the penalty proceedings are not automatic and they are separate and distinct. We draw support from the principles laid down in case of case of CIT vs. Manjunatha Cotton and Ginning Factory [2013 (7) TMI 620 - KARNATAKA HIGH COURT ] and Accordingly direct the Assessing Officer to delete the penalty. - Decided in favour of assessee
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