Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 513 - GUJARAT HIGH COURTPenalty u/s 271(1) (c) - Bogus loan - CIT(A) deleted penalty levy as quashed by ITAT - Held that:- In the original return the assessee had shown the return income of ₹ 7,14,500/-only. After the Investigation Wing detected the money laundering racket at Mumbai, wherein the assessee was also found to have been involved, only thereafter the assessee filed revised return of income declaring bogus loan of ₹ 10 lakh and interest thereon as additional income Thus, it was established that the assessee has considered income of ₹ 10,88,972/-. It is also required to be noted at this stage that even after the original assessment was completed and during the course of investigation by communication dated 23.11.2004 the assessee wrote a letter to the Deputy Director of Investigation, Mumbai offering additional income of ₹ 5 lakh shown as loan from Babulal D. Visrolia and Vinod L. Patodia. However, even at that time also, he offered the additional income of ₹ 5 lakh and thereafter, when the reassessment proceedings were initiated the assessee admitted to have introduced bogus loan of ₹ 5 lakh from Babulal D. Visrolia and ₹ 5 lakh from Vinod L. Patodia [in all ₹ 10 lacs] and shown the additional income of ₹ 10 lakh and amount of ₹ 88,972/-thereon in response to the notice under section 148 of the IT Act. Considering the facts and circumstances, the concealment of income of ₹ 10,88,972/- came to be established and consequently when in a penalty proceedings under section 271(1)(c) of the IT Act, the minimum penalty of ₹ 5 lakh has been levied by the AO, which has been confirmed by the ITAT, we see no reason to interfere with the impugned judgment - Decided against assessee.
|