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2023 (2) TMI 294 - AT - Income TaxPenalty u/s 271AAB - assessee during the search action surrendered income - assessee did not pay the due taxes on the income disclosed rather the disclosed income was set off against the derivative loss - As submitted appellant had made disclosure during the search to buy metal peace and avoid litigation - levy of penalty under the said provision is not mandatory as the wording of the section such as that “Assessing Officer may” to submit that the word ‘may’ give discretion, thus word ‘may’ suggests that the levy of penalty is not mandatory - HELD THAT:- We find that the aforesaid issue raised by the assessee is duly covered by the decision of the Coordinate Bench of the Tribunal in the case of M/s. Vijayshree Autocom Ltd [2022 (3) TMI 1492 - ITAT KOLKATA] wherein, the Tribunal on the identical issue has deleted the penalty while relying upon the decision of the Hon'ble Madras High Court in the case PCIT vs. Shri R. Elangovan [2021 (4) TMI 1131 - MADRAS HIGH COURT] penalty order passed by the Assessing Officer is invalid and is accordingly quashed. The appeals of the assessee are allowed on legal issue.
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