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2017 (9) TMI 658 - AT - Income TaxPenalty u/s 271(1)(c) - addition u/s 68 - voluntary surrender of income - Held that:- The case of the assessee is squarely covered by the observations of the Hon’ble Supreme Court in MAK data Pvt.Ltd. (2013 (11) TMI 14 - SUPREME COURT) wherein observed that the statute does not recognize defences like ‘voluntary disclosure’, ‘buy peace’, ‘avoid litigation’, ‘amicable settlement’ etc. Thus, even voluntary surrender of income will not always necessarily rescue the assessee from the penalty provisions which are in the nature of remedy for loss of possible revenue. In the instant case, the surrender has been made later during the course of assessment proceedings after detection of untruthfulness of the version of the assessee. In these circumstances, the view adopted by the CIT(A) of favourable treatment to such assessee cannot be endorsed. We also notice that the penalty has been imposed for concealment of particulars of income which is consistent with the facts of the case. The assessee has not expressed its handicap anywhere before the lower authorities on the alleged vagueness of notice issued under s.274 r.w.s.271(1)(c) which prevented him in his response in any manner. The onus which lays upon the assessee to rebut the presumption of concealment under Explanation - 1 to s.271(1)(c) has not been discharged. Under the circumstances, the order of the CIT(A) is requires to be reversed and the penalty order of the AO requires to be upheld. - Decided in favour of revenue
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