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2019 (5) TMI 345 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Addition u/s 68 - case was selected for scrutiny - Surrender of income - assessee’s disclosure was not voluntary but under compulsion when cornered by the A.O. at the assessment stage - HELD THAT:- It is an admitted fact that the case was selected for scrutiny and A.O. raised questionnaire to the assessee and called for the explanation of assessee on all the above four issues. The assessee instead of explaining any of the above issues or to file any documentary evidences in support of the same, surrendered the amounts in question for taxation. Therefore, clearly show that assessee made the surrender of the above amounts in question only when A.O. has confronted the assessee with above issues and cornered the assessee at the assessment stage. Thus, the assessee did not make any voluntary surrender of the amounts in question. Assessee had concealed the material facts and given incorrect statement of fact in the return of income. The assessee provided incorrect facts which were marshaled by the A.O. It would show that assessee’s disclosure was not voluntary but under compulsion when cornered by the A.O. at the assessment stage. The assessee did not offer any explanation on any of the above issues either at the assessment stage or at the penalty proceedings. Explanation-1 to Section 271(1)(c) is clearly attracted. Had the case would not have been selected for scrutiny assessment, the assessee would not have surrendered the amount in question for the purpose of taxation. The assessee, therefore, had guilty mind and show that assessee concealed the particulars of income from the Revenue Department which invited penalty proceedings under section 271(1)(c) of the I.T. Act, 1961. - Decided against assessee.
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