Mere non-filing of an appeal against the additions made by the AO and voluntary surrender of any amount to buy peace of mind alone cannot constitute sufficient grounds for the imposition of a concealment penalty

CIT v Harsh Talwar High Court of Delhi ITA No. 1579 of 2010 Decided on: 23 May 2011 Judgment A.K. Sikri, J 1. This appeal was admitted on the substantial question of law whether the ITAT was correct in law in deleting the penalty imposed by the Assessing Officer under section 271(1)(c) of the Income-tax Act. The aforesaid issue has arisen for consideration in the following factual backdrop. For the assessment year 2004-05, the assessee herein who is a partner of M/s. Gallaria June 1st. During the assessment proceedings, the assessee was confronted with some stocks comprising o...