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2015 (9) TMI 132 - ITAT HYDERABADPenalty u/s. 271(1)(c) - CIT(A) deleted the penalty - Held that:- Even though a survey was conducted 22-03-2009 i.e., during the financial year relevant to the AY. 2009-10, even though there was no incriminating material and only certain discrepancies have been found, assessee volunteered to pay additional taxes of ₹ 10 Lakhs. The statement itself, as extracted by the Ld. CIT(A) in the order, do indicate that there was no quantification of concealed income in the course of survey. In fact, what assessee has admitted was payment of ₹ 10 Lakhs as additional tax, accordingly, he worked out the income to be offered which he did in the return filed subsequently. As per the provisions of the Act in order to attract penalty u/s. 271(1)(c) either there should be concealment of income or furnishing of inaccurate particulars. In this case, there is no concealment of income as assessee has returned the correct income which was accepted by the AO in the scrutiny assessment. Question of furnishing inaccurate particulars does not arise on the facts of the case, which was accepted by DR as well. Looking at either way, the conditions specified u/s. 271(1)(c) are not satisfied. Moreover, the returned income and assessed income being the same, the computation of penalty also fails. Explanation-I with reference to expression Concealed income has deemed the amount concealed income indicates that the amount added or disallowed in computing the total income of such person shall for the purpose of Clause-C of this sub-section be deemed to represent the income in respect of which particulars have been concealed”. As already stated, there is no amount added or disallowed in computing the total income of assessee as the returned income was accepted as such. Therefore, under Explanation-I, the amount of concealment is NIL. Therefore, no amount can be considered as concealed income under the facts of the case. There is also no provision in the Act to levy penalty on an income identified/un-earthed in the course of survey proceedings. - Decided in favour of assessee.
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