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TMI Blog2011 (3) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... it can be reasonably inferred that the assessee is obviously striking a balance to avoid a bigger liability or harsher consequences. Be that as it may, when the assessee had voluntarily offered the amount by way of income, there was nothing further for the authority to do when the authority is accepting it at its face value. - Thus appeal of assessee is allowed. - ITA No. 711 (Chandigarh) of 2009 - - - Dated:- 30-3-2011 - Shri D.K. Srivastava, and Ms. Sushma Chowla, JJ. Appearances by: Shri S.K. Mukhi for the Appellant. Shri Rajinder Singh for the Respondent. Ms. Sushma Chowla, Judicial Member The appeal by the assessee is against the order of CIT(A), Patiala dt. 30th April, 2009 relating to asst. yr. 2005-06 against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents at pp. 80 to 82 to have been prepared at Chandigarh on 7th May, 2005 as per the notings on the said paper, which were further certified by Shri R. Malhotra, chartered accountant with his seal on it and it is mentioned that the same have been compiled on the basis of books of account and relevant records shown to us i.e., chartered accountant. The assessee had enclosed another set of final accounts reflecting true state of affairs with the return of income and the AO found a difference on the credits of P L a/c i.e., (income). The difference was tabulated at p. 2 of the assessment order totalling Rs. 2.09 crores. The assessee was show caused in respect of the suppression of receipt of income to the extent of Rs. 2.09 crores and as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rving as under : "I after considering the rival submissions, am of the firm view that the appellant has made the surrender of Rs. 25 lacs after issue of show-cause notice under section 142(1) and after being confirmed by the AO and AO after his finding has also made an addition of Rs. 1,36,000 out of expenses due to personal use by the partners and out of water charges being non-verifiable hence it is not correct to say that only addition made by AO is amount surrendered and Hon'ble Punjab Haryana High Court decision In Rajesh Chawla v. CIT (2006) 203 CTR (P H) 209 is squarely applicable further since it is a deliberate and consciously attempt by the appellant to suppress the receipts and just its submission and subsequent agreed surren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the discrepancies in the documents seized and thereafter the surrender was made on 20th Dec, 2007. The said surrender subject to no penalty was not accepted by the AO as is apparent from the assessment order itself where penalty proceedings under section 271(1)(c) of the Act were initiated. Reliance was placed on the order of the CIT(A) in para 3. The learned Departmental Representative further submitted that the reliance placed by the learned Authorised Representative on the ratio laid down in CIT v. Rajiv Garg is misplaced. 7. We have heard the rival contentions and perused the record. The issue raised in the present appeal is against the levy of penalty for concealment under section 271(1)(c) of the Act. The basis for makin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 271(1)(c) of the Act. 8. We find that similar issue arose before the Hon'ble Karnataka High Court in the case of T.P. Indrakumar v. ITO [2010] 322 ITR 454 wherein it has been held as under : "While it is no doubt true that an admission which is otherwise not an admission of the very nature by itself can constitute an admission of the liability, has to be probed further, an admission of the nature that the assessee voluntarily offered i.e., Rs. 10 lakhs by way of income to avoid any further scrutiny by the AO can be acted upon at its face value without further probe. The entire exercise by the AO is to determine the income of the assessee, whereupon tax liability gets automatically fixed in terms of the rates as provided for b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tricals, Ludhiana against which information was received by the Intelligence Wing that the members of the group were indulging in tax evasion by showing income from other sources as agricultural income. During the course of investigation the persons were asked to produce evidence about agricultural income and in the absence of any documents being produced the said persons offered to disclose income/s subject to no penalty. The Hon'ble High Court held that in such circumstances it could not be held that the assessee had (sic - not) concealed its income and the assessee was held to be liable to levy of penalty under section 271(1)(c) of the Act. 11. The facts of the present case before us are distinct from the facts before the Hon'ble High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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