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2017 (5) TMI 1105 - ITAT DELHIPenalty u/s. 271(1)(c) - addition being business income offered by the appellant during the course of survey operation - CIT-A deleted the penalty - Held that:- The assessee has surrendered ₹ 30 lacs vide its letter dated 13.3.2007 addressed to the AO, after survey u/s. 133A carried out on the business premises of the assessee on 12.2.2007, as per record available with us. We have not seen that assessee has any retraction from its surrender of ₹ 30 lacs made vide his letter dated 13.3.2007 by mentioning any plausible reasons. More seriously, the assesse has not shown the amount of ₹ 30 lacs on account of surrender in the return of income and offer for taxation, neither any mention has been made nowhere in the return of income or accounts explaining the return. Only the AO has noticed this mistake committed by the assessee in the return of income. AO asked the assessee vide his Order sheet entry dated 10.8.2009 and assessee filed its reply to the same vide his letter dated 31.8.2009 by stating that we have no objection if the assessment for the financial year 2006-07 is made considering the taxable profit at ₹ 30 lacs (surrendered during survey) plus average taxable profit for the last two preceding financial years. As per the penalty order the assessee has written a letter dated 13.3.2007 offering the surrender amount of ₹ 30 lacs on account of discrepancy in the stocks, purchases and expenses etc. and other documents. We are of the view that Ld. CIT(A) has not considered these aspects in the impugned order while deleting the penalty in dispute and passed a non-speaking order. Therefore, the impugned order is not sustainable in the eyes of law and the same is set aside. This matter requires thorough investigation as mentioned above, at the level of the Ld. CIT(A) - Decided in favour of revenue for statistical purposes
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