Penalty cannot be imposed merely for subsequent higher disclosure of income

In the case of CIT v. Suraj Bhan [2007] 159 Taxman 26 Hon’ble Punjab and Haryana High  held that when an assessee files a revised return showing higher income and gives an explanation that he offered higher income to buy peace of mind and avoid litigation, penalty cannot be imposed merely on account of higher income having been subsequently declared.  Punjab-Haryana High Court Commissioner Of Income Tax vs Suraj Bhan Date 19/4/2006 Equivalent citations: (2006) 203 CTR P H 230, (2007) 294 ITR 481 (P&H), [2007] 159 Taxman 26 Bench: A K Goel, R Bindal JUDGMENT 1. Following question o...