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2012 (11) TMI 107 - AT - Income TaxPenalty u/s. 271(1)(c) - survey u/s 133A - addition to income - Held that:- There were huge tans in cash which were not explained during the survey proceedings. Stock difference between the physical stock and the books was also worked out & when these were confronted to the Director Shri Vasudevbhai Patel, he admitted that the firm had Rs.50 lacs as undisclosed income and agreed to pay the tax. No letter or correspondence withdrawing the disclosure made or alleging coercion was made by the assessee till the scrutiny proceedings started about two years later. Although, no income was declared on this basis in the return, still in the assessment proceedings the assessee offered to be subject to the addition as originally offered. AO is bound to examine all explanations and evidences in those proceedings, separately while considering the levy of penalty & cannot be bound by any condition of non-levy of penalty at the time of assessment. Thus in view of the facts as the document and cash and stock were found at the premises of the assessee, the additional income was accepted by the Director, assessee responsible person, the Director was confronted with the documents and evidences during survey although they may have been found from possession of employee and no claim of coercion or wrong doing was made even for months after the survey the addition as made by the AO is confirmed - against assessee.
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