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2019 (4) TMI 1521 - AT - Income TaxPenalty u/s 271(1)(c) - survey u/s 133A was carried out at the premises of the assessee on 28.3.2012 i.e. much prior to the closing dates of accounts and date of filing of return u/s 139(1) - assessee discloses amount during action under section 133A, and the same is honoured by filing return of income subsequent thereto - HELD THAT:- Admitted during survey u/s.133A when disclosed in the return of income furnished on or before due date and the same is accepted by the AO, there cannot be a case for levy of penalty. When the due date for filing return of income was not expired, then how the AO could infer that the assessee would not disclose the income in its return. The assessee has disclosed this income in its return and the AO has accepted the same without any addition or disallowance. AO has simply carried away by the surmise that had the survey not taken place, the assessee would not have disclosed this income. This assumption and surmises of facts are without any basis. AO cannot anticipate that assessee will not disclose a particular income. There are number of judgments available on this issue where it is held that when an assessee has made a complete disclosure in the return of income and offered the admitted amount for taxation, then there is no question of concealment of income or furnishing inaccurate particulars of income so as to attract provisions of section 271(1)(c). In the case of SAS Pharmaceuticals [2011 (4) TMI 888 - DELHI HIGH COURT] has held that when the assessee discloses amount during action under section 133A, and the same is honoured by filing return of income subsequent thereto, no penalty u/s.271(1)(c) is sustainable. CIT(A) has made detailed analysis of the issue in the light of the of various judgments and rightly come to the conclusion that levy of impugned penalty is neither sustainable on facts nor in law. CIT(A) and reject the ground of appeal of the Revenue
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