Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 757 - AT - Income TaxAddition on account of unexplained credit u/s 68 - Concealment penalty u/s 271(1)(c) of the Income Tax Act, 1961 - Non substantiation explanation submitted during the assessment proceedings - School fees paid by close relatives i.e. Mother-In-Law - Held that:- We have heard both the parties and their contentions have carefully been considered. It is a case where the assessee had submitted the explanation during the assessment proceeding itself and the source of payment of school fee was mentioned to be payments made by mother-in-law of the assessee. Thus, the persons who has paid the money is closely related to the family of the assessee. The AO has confirmed this addition for the reason that assessee failed to prove the genuineness of the source of payment. However, it is not the case of AO that the contention of the assessee that the source of payment was mother-in-law is not correct. The Tribunal also upheld the addition by relying upon assessment year 2005-06 and the addition has been confirmed for the reason that source and genuineness of the transaction was not accepted in A.Y 2005-06. It is also observed that assessee did not file corroborating evidence. Considering these facts and circumstances of the case, though the non-substantiation of explanation during the course of assessment proceedings may be a good ground for making the addition but while levying the penalty, there should be some material on record to suggest that the source which was explained by the assessee was not true or correct. It is not a case where any their person not related to the assessee has paid the school fee of the children, but a very close relation has paid the said amount. Therefore, we are of the opinion that it is not a very fit case for levy of concealment penalty. Moreover, as per decision of Hon’ble Bombay High Court in the case of Nayan Builders & Developers [2011 (3) TMI 46 - ITAT MUMBAI] when a question of law has been admitted on the impugned addition, then no case is made out for imposition of penalty. - Decided in favour of assessee.
|