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2017 (9) TMI 1226 - AT - Income TaxPenalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - professional receipts disclosure - Held that:- Admittedly, the assessee has disclosed the additional income in its return of income only after the survey was carried out by the revenue authorities The assessee has furnished original return of income on 01/11/2004 and revised return was also filed on 14/01/2005 on which the Ld. assessing officer has accepted the same and acted upon the same. Therefore, facts of the present case also fall on the similar lines on the issue decided by Hon’ble Gujarat High Court in case of CIT versus Girish Devcahnd Rajani[2013 (7) TMI 524 - GUJARAT HIGH COURT]. Therefore, respectfully following the decision of the Hon’ble Gujarat High Court on the above issue we direct the Ld. assessing officer to delete the penalty on this count too. It is apparent that during the year the income of the assessee disclosed by him during the course of survey as beer extrapolation of the records pertaining to earlier year found during the course of survey. The revenue is also not brought on any material on record for the purpose of levy of the penalty that similar situation prevailed the impugned assessment year also which was prevailing in the year 2002. Before us neither the revenue nor the assessee could show us that how the amount of rupees ₹ 12,000 per day regarding the professional fees has been estimated by the assessee and the relevant documents pertaining thereto. In view of this we are of the opinion that amount of disclosure made by the assessee was only on estimate basis based on the documents pertaining to earlier years. Addition has been made on estimated basis and that too without any material pertaining to that year, therefore, the disclosure made by the assessee is voluntary in nature, in the revised return, which is within time and cognizance of which has been taken by AO while framing the assessment order, therefore, the penalty under section 271 (1)(C) cannot be levied on such addition - Decided in favour of assessee.
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