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2016 (5) TMI 1553 - AT - Income TaxLevy of penalty u/s 271(1)(c) - unexplained credit under section 68 - HELD THAT:- The assessee has not produced any materials to justify his stand that the penalty is not warranted in all these cases. The assessee has also not furnished the names and complete addresses of persons from whom he received the loans, the date of transaction and mode of payment, confirmation statements or any other relevant materials to establish the creditworthiness of the creditors. In the absence of these details, it is not possible for the Revenue to make any enquiries of its own to find the genuineness of the transactions. In the case of unrecorded bonded loans, the assessee himself has conceded that this amount represents unaccounted income of the assessee. The assessee also could not explain the source of investment made towards unredeemed pawn items. For the assessment years 2006-07 & 2007-08 source of investment could also not be established. For the above mentioned we do not have any other options but to confirm the penalty levied on all these counts. Accordingly penalty levied on all these counts are hereby confirmed. Levying penalty in regard to addition made on account of agricultural income, investment made in purchase of land to the extent and investment made in M/s.Ramdev Jewellery - AO has made addition only for the reason that the assessee’s wife did not declare any agricultural income in her return of income with respect to the adjacent agricultural land owned by her - The quantum of agricultural income declared by the assessee is also minimal and there is no substantial reason to disbelieve the claim of the assessee. Revenue has also not brought any evidence to show that the assessee was not indulging in agricultural activities. Similarly, addition towards purchase of land to the extent of ₹ 2,08,000/- is made because the AO opined that the assessee had paid on-money. However, other than oral statements, no other materials or persons were examined to conclusively prove that the assessee had received on-money. Further, investment in Ramdev Jewellery for ₹ 50,000/- is a nominal amount and there can be a presumption that the assessee could possess such amount from his tax paid income. We hereby direct the AO to delete the penalty made on account of the incorrect claim of agricultural income for all the relevant assessment year, investment in purchase of land to the extent of ₹ 2,08,000/- and investment in Ramdev Jewellery for ₹ 50,000/- for the assessment year 2005-06. Appeals of the assessee are partly allowed.
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