Penalty Under Section 271(1) Waived After Taxpayer Voluntarily Disclosed Additional Income During Survey, Paid Advance Tax

Penalty under s.271(1) was set aside by ITAT where assessee disclosed additional income during survey under s.133A. ITAT held that since assessee had already paid sufficient advance tax before survey, return filing due date had not expired, and declared income was accepted without variation in assessment under s.143(3), revenue's contention that income would not have been disclosed absent survey was untenable. The fact that assessee had proactively paid advance tax and ultimately reported same income that was accepted in assessment demonstrated no intention to conceal. Penalty imposed by AO and upheld by CIT(A) was found unjustified. Assessee's appeal allowed. .....

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