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2014 (12) TMI 225 - AT - Income TaxAdmission of additional ground – Held that:- No fresh investigation is required for the additional grounds raised by the assessee and the facts are clear from the material available on the record, thus, additional grounds are admitted. Penalty u/s 271(1)(c) – Assessee could not furnish the details relating to cash credits and agreed for the addition - Held that:- The AO made the addition and initiated the penalty proceedings u/s. 271(1)(c) - from the above observations of the AO, it is crystal clear that the penalty proceedings u/s 271(1)(c) of the Act were initiated in respect of addition of ₹ 5,40,000/- and the AO clearly mentioned that the assessee tried to make clear concealment of income by way of claiming unexplained credits - both the conditions i.e. concealment of income and furnishing inaccurate particulars of income by way of claiming unexplained credits existed and the penalty u/s 271(1)(c) of the Act was rightly initiated by the AO. Cash credits voluntarily surrendered by assessee – Amount received from many relatives and list of them could not be shown – Held that:- Assessee contended that the voluntary surrender of income was not acceptance of incorrectness of these cash creditors, but it was offered to buy peace of mind by herself and her relatives and this does not mean that the cash credits were the assessee's own income and she attempted to conceal the same in the disguise of cash credits - the assessee had shown cash credits of ₹ 5,40,000/-, but failed to explain the names of the persons from whom those credits were received - when the assessee was unable to explain those cash credits to the satisfaction of the AO, she preferred to surrender the income and offered the same for taxation. AO did not accept the explanation of the assessee and credited the same as concealment of income and accordingly initiated the penalty proceedings u/s. 271(1)(c) of the Act - had the case been not selected for scrutiny and the AO did not ask for explanation from the assessee, the addition was not possible because only when the assessee was cornered the amount was surrendered and merely on this basis that the assessee made the surrender, it cannot be said that there was no concealment of income - relying upon MAK Data P. Ltd. Versus Commissioner of Income Tax-II [2013 (11) TMI 14 - SUPREME COURT] - only on the basis that the assessee made surrender when cornered by the Department, it cannot be said that the penalty u/s. 271(1)(c) of the Act was not leviable – thus, the order of CIT(A) is upheld – Decided against assessee.
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