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2013 (8) TMI 475 - AT - Income TaxPenalty u/s 271(1)(c) - mala fide intention - onus on the assessee to prove the genuineness of credits and justify the expenses claimed in profit and loss - Held that:- After perusing the assessment order in which the Assessing Officer has made all additions, disallowances, treating the cash credits/foreign receipts as well as the assessee's declared agricultural income merely on estimate and guess work basis without bringing on record any positive and concrete evidence to be applied against the assessee - Assessing Officer has not quoted any comparable case in this line of business, which has shown better gross profit than that shown by the assessee in the present assessment year. As stated above, the assessee has filed statement of trading account, profit and loss account, balance-sheet and audit report in Form 3CD duly signed by the authorised person. As regards the cash credits which the assessee has shown in his return, one can establish its genuineness by furnishing necessary documentary evidence but due to lack of communication by his chartered accountant the assessee could not furnish the same. As regards the foreign gift in dispute which the assessee has received from his real brother who is residing in the USA and made the gift to the assessee out of love and affection through banking channel, for that the assessee has produced all necessary evidence in the assessment proceedings. As regards to the agricultural income declared by the assessee on estimation basis, which has been converted into the income of the assessee from other sources without appreciating the Revenue's record furnished before the Assessing Officer being ancestral land as per Jamabandi available with the assessment record. Penalty in dispute has been imposed is purely on estimation basis and the Assessing Officer has not brought any material on record to establish any mala fide intention of the assessee to evade tax in the return filed by the assessee - Following decision of CIT v. Metal Products of India [1984 (1) TMI 36 - PUNJAB AND HARYANA High Court] and Harigopal Singh v. CIT [2002 (8) TMI 65 - PUNJAB AND HARYANA High Court] - Decided against Revenue.
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