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2016 (5) TMI 818 - AT - Income TaxPenalty u/s 271(1)(c) - income surrendered - Held that:- As during survey, admittedly, certain documents were found, which were not explainable by the assessee. However, there was neither any detection by the Department on the basis of these documents, that these contain some element of income pertaining to the assessee. Admittedly, also that the assessee made surrender, however, the assessee kept on maintaining that this is not its total income, at best, these are the advances, against which it will have to deliver goods in future. This fact is very clearly emerging from the surrender letter. These contentions of the assessee had nowhere been rebutted by the lower authorities at any stage. In the present case, without any rebuttal by the lower authorities, we can very safely infer that whatever amount was surrendered by the assessee was not its actual income, but just an estimate. Why and how the assessee decided to surrender the same and pay additional taxes on it, is not a question, before us, to go into. In these circumstances, it cannot be said that the income was surrendered after detection by the Department. As no income accrued to the assessee during the relevant assessment year. Though it is also a matter to be deliberated upon that there were certain amounts jotted down on the seized documents, which were not explainable by the assessee. However, none has gone into to find the nature of these figures, in view of the fact that the assessee itself surrendered certain amounts and paid due taxes thereon. In the absence of a categorical finding by the Department that the surrendered amount was in the nature of income, the penalty under section 271(1)(c) of the Act cannot be levied. - Decided in favour of assessee
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