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2016 (12) TMI 1186 - ITAT MUMBAIPenalty u/s 271(1)(c) - unexplained cash deposits - Held that:- The assessee could not come forward before the authorities below to explain the source of cash deposit of balance amount of ₹ 9,18,775/- and why the same has not incorporated in the return of income filed with the Revenue. The assessee’s contention that the C.A. of the assessee expired in April, 2006 and the assessee has engaged the services of wife of the deceased C.A., who is not a qualified C.A. hence the error had occurred, could not be accepted as bonafide explanation to take the assessee out of clutches of penal provisions as contained in Section 271(1)(c), as the assessee has more than three years after death of his CA to have arranged his affairs so that true and correct return could be filed with the Revenue which is the obligation of the assessee and the onus is on the assessee to have filed true and correct return of income, as three year period after the death of CA is more than sufficient period available to the assessee to have arranged his affairs. The return of income was filed by the assessee in June, 2009 whereby there was a gap of more than three years when the CA expired on April 2006. Thus the explanation offered by the assessee is not bonafide and the said explanation was rightly rejected by the authorities below. This case is a fit case to impose penalty u/s 271(1)(c) - Decided against assessee
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