No Penalty on Income surrendered with condition that no penal action shall be taken

If assessee surrenders an amount with a condition that no penal action shall be taken, to avoid further litigation and to buy peace, no penalty u/s. 271(1)(c) can be imposed IN THE ITAT DELHI BENCH ‘I’ Income-tax Officer v. Rakesh Kumar Gupta IT APPEAL NO. 2690 (DELHI) OF 2009 [ASSESSMENT YEAR 2005-06] FEBRUARY 24, 2012   ORDER U.B.S. Bedi, Judicial Member – This appeal of the department is directed against the order passed by the CIT(A)-Meerut, dated 24.03.2009 relevant to assessment year 2005-06 whereby deletion of addition of penalty of Rs. 5,08,557/...