Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 1055 - AT - Income TaxValidity of confirmation of penalty u/s 271(1)(c) – Assessee failed to offer any explanation regarding the deposit - Penalty proceedings initiated on addition of unexplained deposit made u/s 68 – Held that:- The assessee claimed to have received share application money from one person which the Director (Inv.) had found to be engaged in the business of accommodation entries and assessee was found to be the beneficiary of the same - assessee had no answer to the query of the revenue authorities - Section 68 clearly states that if a credit appearing in the books of account of the assessee is not explained regarding its nature and source then this amount will be treated as income of the assessee - the assessee has not furnished any explanation regarding this cash credit, therefore, AO rightly treated it as income of the assessee - assessee has failed to offer any explanation regarding this deposit. Therefore, explanation I to Section 271(1)(c) comes into play - the provisions of Section 271(1)(c) not only covers the cases in which assessee has concealed the income or has furnished inaccurate particulars of income - even without there being anything to indicate noteworthy deeming fiction for concealment of income comes to play and it covers the cases where the assessee does not offer any explanation for any material concerning the computation of total income - the assessee miserably failed to offer an explanation for the cash credit raised in the form of share application money - the case of the assessee is squarely hit by the provisions of Section 271(1)(c) – thus, the order of the CIT(A) is upheld – Decided against assessee.
|