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As such the assessee himself suo-moto revised the computation and paid the taxes before any finding from the AO. Accordingly, in such a situation the penalty provisions cannot be attracted.

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Sec. 271(1)(c) of Income Tax Act, 1961 - Penalty - The assessee is an individual and the partner in various partnership firms. The assessment for the year under consideration was framed under section 143(3) of the Act after making the additions. The AO initiated the penalty under section 271(1)(c) of the Act, on account of furnishing inaccurate particular of income and thereby concealment of income by issuing notice under section 274 of the Act. The solitary issue raised by the assessee is that the CIT (A) erred in confirming the penalty levied by the AO for Rs. 5,45,725/- under the provisions of section 271(1)(c) of the Act. ITAT allowed the appeal of the assessee and deleted the penalty holding that ”the assessee has not deliberately undisclosed the income under the head capital gain and claimed excessive interest expenses. The assessee himself suo-moto revised the computation and paid the taxes before any finding from the AO. Accordingly, in such a situation the penalty provisions cannot be attracted“.—PRAVINBHAI KANUBHAI DESAI vs. Asstt. CIT.[2020] 26 ITCD Online 024 (ITAT-AHMEDABAD)