Despite voluntary surrunder penalty u/s 271(1)(c) is justified if surrunder made after incriminating material is found

0 comments Sunday, January 29, 2012
I have found the following order of Delhi ITAT as very good one on the issue of levy of penalty u/s 271(1)(c). In this case it has been held that   If an assessee surrenders any income after department has collected incriminating material with regard to such income, it cannot be called a voluntary surrender for purpose of section 271(1)(c).


In this case some incriminating material showing possible income of the assessee was found, which was confronted to the assessee, but instead of rebutting the same, the assessee surrundered the amount as his income, whereby penalty u/s 271(1)(c) desipite of surrunder was levied which was upheld by the Tribunal in this case. 
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