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2015 (11) TMI 1576 - AT - Income TaxPenalty u/s 271(1)(c) - voluntary surrender of income by assessee - Held that:- Undisputedly, penalty proceedings as well as assessment proceedings are to be decided independently and the penalty proceedings are not to be influenced by the assessment proceedings. In the instant case, no doubt, assessee has surrendered the income of ₹ 40,00,000/- during search and seizure operation but Hon’ble Apex Court in the judgement CIT Vs Suresh Chandra Mittal (2001 (6) TMI 63 - SUPREME Court ) held that in this case, “the assessee initially filed return with meager income and subsequently filed revised return showing higher income after search and seizure operation, for reopening of assessment, in order to buy peace of mind and to avoid protracted litigation, the Appellate Tribunal has rightly held that burden of proving concealment into discharge, the penalty cannot be levied”. But in the instant case, Ld. CIT(A) has gone a step further by holding that surrender of income of ₹ 40,00,000/- during the assessment year 2007-08 was in fact not generated during the year under assessment rather it being a forfeiture of sale amount as income for the assessment year 2006-07, assessee has bona fidely surrendered the same. So, as a sequel to the discussion made in the preceding paragraphs, we are of the considered view that the A.O. has failed to make out the case of concealment of particulars of income or furnishing of inaccurate particulars of such income by the assessee, rather, it was a case of voluntary surrender of income of ₹ 40,00,000/- for tax purpose in order to buy peace of mind and to avoid vexed litigation and Ld. CIT(A) has legally and rightly passed the impugned order. Finding no illegality or perversity in the impugned order, we hereby dismiss the present appeal filed by the Revenue. - Decided in favour of assessee.
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