Penalty u/s. 271(1)(c) quashed as additional income was voluntarily disclosed and not based on seized material

DCIT Vs Ethirajulu Vajravel Kumaran (ITAT Chennai) ITAT Chennai held that penalty under section 271(1)(c) of the Income Tax Act not sustainable since the additional income offered by the assessee was voluntary and addition is not based upon incriminating material seized during the course of search. Accordingly, order of CIT(A) upheld and appeal of revenue dismissed. Facts- A search and seizure operation u/s.132 of the Act was conducted in the case of M/s.Arunai Group & Others on 25.03.2021. The assessee was also subjected to search. During the course of the search, certain loose sheets in...