Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1806 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - deposit of cash found in bank accounts - HELD THAT:- Assessee had made specific request for making further enquiries/investigation but no further enquiry was made by the A.O. If Utsav Corporation did not respond to the notice u/s. 133(6) A.O. should not have drawn any adverse inference without making any further enquiry. It appears that the entire additions have been made only on the basis of suspicion, conjunctures and surmises. In our considered opinion, the same cannot be the foundation for the levy of penalty u/s. 271(1)(c) of the Act. Assessee had given a very logical and reasonable explanation in respect of cash found to be deposited in the bank accounts. It is equally true that the said explanation did not find any favour with the A.O. But the fact remains that a very logical and reasonable explanation was given by the assessee. In our understanding of the facts, we do not find any this to be a fit case for the levy of penalty u/s. 271(1)(c) - Decided in favour of assessee.
|