In terms of Section 126(5) where a person voluntarily discloses to a tax authority the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the tax authority, the tax authority may consider this fact as a potential mitigating factor when quantifying a penalty for that person.
(ICAI FAQ PUBLICATIONS 06-09-2017 General disciplines related to penalty, General Penalty and Waiver of penalty : FAQ NO. 11)