engaged in manufacturing and selling stainless steel utencils. During search action initiated on 19 & 20th August 1985 at the factory and residential premisses of the partners of the firm, certain cash and ornaments belonging to the partners were seized. On scrutiny, it was noticed that the assessee was making purchases and sales outside the books maintained by the assessee. While the proceedings under Section 132(5) of the Income-tax Act, 1961, were in progress, the assessee filed petition before the C.I.T. under section 273A of the Act. It is not in dispute that the C.I.T. has slightly enhanced the amount offerred by the assessee. Accordingly, the assessee has offered the amount to tax as quantified by the C.I.T. under Section 273A of the Act. The additional income offerred by the assessee was accepted by the Assessing Officer and penalty was levied under Section 271(1)(c) of the Act. On appeal filed by the assessee, the CIT(A) upheld the penalty levied by the Assessing Officer for the Assessment Year 1984-85 and 1985-86. The CIT(A) deleted the penalty for the Assessment Year 1986-87 on the ground that the return was filed in the
