29 May 2012
one of my client is a company. The company has faced a search & survey operation in 2008. during the search my client has surrender share capital of Rs. 1 Cr. related to A.Y 2003-04. During the assessment proceedings ACIT has also made addition of Rs. 1.50 cr for the A.y 2004-05 & 2005-06 on similar issue as client has surrendered the share capital for 1 year. despite the fact that all necessary documents are produced before ACIT for this share capital,Assessee has surrendered the amount only to avoid litigation and to buy peace of mind with the condition of no penalty. as agreed and committed, my client has not filed any further appeal against your assessment orders but ACIT has not accepted the condition of no penalty. and imposed peanlty u/s 271 (1) (c). Now my client has filed appeal against this penalty. can anyone help me in this regard. and provide some useful information/ updates regarding this matter.