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2016 (11) TMI 1631 - ITAT CHENNAILevy of penalty u/s 271(1)(c) - unexplained investment in jewellery - assessee has admitted undisclosed income under VDIS Scheme in 1997 - HELD THAT:- Though the assessee admitted jewellery of ₹ 2.23 crores and the cash of 3.00 crores under VDIS, she has not filed the wealth tax returns which implies that the wealth declared under VDIS has been exhausted and nothing is carried forward for subsequent year. The assessee is from the educated and from affluent family, assisted by the legal counsels and aware of the wealth tax provisions. In the absence of any evidence for purchase of jewellery from the explained sources, and in the absence of wealth tax returns, we are unable to accept the source of jewellery was from explained sources/VDIS. The assessee cannot take an advantage of VDIS disclosure for explaining the source of investment in jewellery by evading wealth tax. We are of the considered opinion that the explanation of investment out of VDIS and Stridhan, gifts is nothing but an afterthought. Even if the assessee acquires the gold from VDIS, and gifts she is bound to declare in wealth tax returns and pay wealth tax failing which it remains unaccounted. Therefore, we hold that this is clear case of penalty under section 271(1)(c) of act. The facts of the assessee’s case are squarely covered by Hon’ble Supreme Court judgement in the case of MAK Data (P) Ltd. Vs. CIT–II [2013 (11) TMI 14 - SUPREME COURT] and this is a clear case for penalty under section 271(1)(c). Accordingly we set aside the order of the Ld.CIT(A) and confirm the penalty levied by the Assessing Officer and dismiss the cross objections filed by the assessee. - Decided in favour of revenue.
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