Penalty under s 271(1)(c)

In the absence of any evidence to show that the omission to offer additional income on account of gift received by assessee was attributable to any intention or desire on the part of assessee to hide or conceal income, no penalty can be levied under s 271(1)(c), more so when assessee has surrendered amount after receipt of questionnaire from AO to buy peace — as held by DelHC in CIT v Harnarain — In favour of: The assessee.

The surrender of the amount by the assessee after the receipt of the questionnaire could not lead to an inference that it was not voluntary in the absence of any material on record to suggest that it was bogus or untrue. It is further evident that there was neither any detection nor any information in the possession of the revenue which might lead to a conclusion that there was detection of concealment by the revenue.

Decided on: 31 October 2011