TMI Blog2022 (5) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... IDS Scheme. As in CIT Vs Suraj Bhan [ 2006 (4) TMI 107 - PUNJAB AND HARYANA HIGH COURT] by following the decision of Hon'ble Supreme Court in CIT Vs Suresh Chand Mittal [ 2001 (6) TMI 63 - SC ORDER] held that when the assessee files a revised return showing higher income and gives explanation that he offered higher income to buy peace of mind and avoid litigation, penalty cannot be imposed merely on account of higher income having been subsequently declared. We are of the view that no penalty was leviable on the facts of the present case and we direct to delete the same. - Decided in favour of assessee. - ITA No. 346/Srt/2019 - - - Dated:- 6-5-2022 - Shri Pawan Singh, Judicial Member And Dr. Arjun Lal Saini, Accountant Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 12,60,864/-. The Assessing officer accepted revised computation of income and further recorded that the assessee has paid due taxes alongwith applicable interest. The Assessing Officer initiated penalty proceedings under Section 271(1)(c) of the Act. Before passing the penalty order under Section 271(1)(c) of the Act, the assessing officer issued notice under Section 274 read with Section 271(1)(c) dated 06/12/2016. In response to the show cause notice, the Assessing Officer recorded that no body attended the hearing nor filed any explanation. The Assessing officer levied the penalty @ 100% of tax sought to be evaded thereby imposing penalty of Rs. 3,38,136/- being 100% of tax sought to be evaded. 3. On appeal before the ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee would have not declared it, possibly the same might have passed from scrutiny. 4. The ld. CIT(A) after considering the submission of assessee held that the assessee has taken a bogus long term capital gain of Penny Stock when the case of assessee was taken for scrutiny, she surrendered this amount to buy peace of mind and to avoid litigation. The plea of assessee that no penalty is leviable as she has accepted his mistake and paid tax, is devoid of merit. The ld. CIT(A) held that the Hon'ble Supreme Court in the case of MAK Data (P) Ltd. Vs CIT (2013) 38 taxmann.com 448 held that voluntary disclosure does not lead to assessee being free from mischief of penal proceedings under Section 271(1)(c) of the Act. The ld. CIT(A) also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax for concealment of any income as the assessee herself surrendered the income for taxation. To support his submission, the ld. AR of the assesse has relied upon the following decisions: (i) CIT Vs Suresh Chandra Mittal 251 ITR 009(SC) (ii) CIT Vs Bhavinkumar M Dagli 377 ITR 389 (Guj HC) (iii) CIT Vs Shankerlal Nebhumal Uttamchandani 311 ITR 327 (Guj) (iv) Pr.CIT Vs Smt. Prabhjot Kaur Chhabra 419 ITR 094 (MP HC) (v) CIT Vs Suraj Bhan 294 ITR 481 (P H HC) (vi) PCIT Ors. Vs Krishna Devi Ors. 431 ITR 361 (Del HC) (vii) Lalubhai P Bathani Vs DCIT 242/Srt/2017 (Surat Trib) (viii) Smt. Pushpaben P Sonarupawala V ACIT 17 CCH 023 (Ahd. Trib) (ix) Neelu Garg Vs ITO 55 CCH 0459 (Chad Trib). 6. On the other hand, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme. The Hon'ble Punjab Haryana High Court in CIT Vs Suraj Bhan (294) ITR 481 by following the decision of Hon'ble Supreme Court in CIT Vs Suresh Chand Mittal 252 ITR 009 (SC) held that when the assessee files a revised return showing higher income and gives explanation that he offered higher income to buy peace of mind and avoid litigation, penalty cannot be imposed merely on account of higher income having been subsequently declared. 8. In view of the aforesaid factual and legal discussion, we are of the view that no penalty was leviable on the facts of the present case and we direct to delete the same. 9. In the result, this appeal of the assessee is allowed. Order pronounced in the open court on 06th May 2022 and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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