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2015 (11) TMI 1440 - AT - Income TaxLevy of penalty u/s 158BFA(2) - Held that:- When there is a bona fide surrender, undisclosed income is computed merely on the basis of such surrender, that too in the block period on lump sum basis, no penalty would be imposable u/s 158BFA(2) of the Act because there is no determination of undisclosed income by the assessee under clause (c) of Section 158BC which is the requirement for imposition of penalty. See CIT vs Harkaran Das Ved Pal [2008 (11) TMI 47 - HIGH COURT DELHI] A bare perusal of seized material shows that no additional investment by the assessee in acquisition of property has been made suggesting the undisclosed income nor any further investigation has been made by the A.O. regarding concealed income. In other words, there is no independent material on the file except voluntary acceptance of the assessee as to the undisclosed income sufficient to proceed with the penalty proceedings. From the undisputed facts and circumstances of the case, it is proved that when the assessee has voluntarily accepted the undisclosed income bona-fidely for the purpose of buying peace of mind and to avoid protracted litigation, no independent determination of undisclosed income as per Section158BF(c) and Section 158BB(1) of the Act has been a made, there is no question of imposing penalty u/s 158BFA(2) of the Act. - Decided in favour of assessee.
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