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2016 (5) TMI 281 - AT - Income TaxPenalty under section 271AAA - voluntary disclosure - Held that:- The offer of undisclosed income of ₹ 2 crores was made voluntarily by the assessee without any detection by the Department and, accordingly, the argument of the learned Departmental representative that but for the search, this income would not have been offered does not hold any water and deserves to be dismissed. It is already well settled that though the income is not disclosed in the return filed under section 139(1) of the Act but duly disclosed in the petition filed under section 132(4) of the Act followed by the filing of return in response to section 153A of the Act and taxes paid thereon, then the assessee would not be invited with the levy of penalty. We find that if the argument of the learned Departmental representative that since the asses see had not offered the said income in the return filed under section 139(1) of the Act thereby levy of penalty is in order is to be accepted, then it would make the immunity provisions contemplated under section 271AAA(2) of the Act redundant. The Legislature in its wisdom had given a thoughtful consideration on the facts and circumstances under which the assessee would not be invited with the levy of penalty pursuant to the search subject to fulfilment of certain conditions stipulated in the said section. Hence, in view of the above, we hold that the levy of penalty is not automatic and the assessee is clearly entitled for immunity from levy of penalty. - Decided in favour of assessee
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