Case Law Details
Gujarat Smelting & Refining Co. Ltd. Vs ITO (ITAT Ahmedabad)
The assessee cannot be absolved from the penalty merely on the reasoning that it has agreed for the addition/disallowance during the quantum proceedings. The Hon’ble Supreme Court in the case of MAK Data Private Ltd versus CIT reported 38 com 448 has held as under:
“9. We are of the view that the surrender of income in this case is not voluntary in the sense that the offer of surrender was made in view of detection made by the AO in the search conducted in the sister concern of the assessee. In that situation, it cannot be said that the surrender of income was voluntary.”
In the case on hand, the ld. AR appearing on behalf of the assessee has not brought any material/reliable information suggesting that the assessee has made voluntary disclosure during the assessment proceedings before the detection of bogus loss shown by it by the income tax Department. Accordingly, we are of the view that the assessee cannot escape from the penalty in the given facts and circumstances.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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