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2017 (3) TMI 1265 - HC - Income TaxPenalty proceedings under Section 271(1)(c) - unexplained cash credit standing in the assessee's books in the names of minor sons of the partners of the assessee firm - Held that:- We cannot loose sight of the fact that the minors in question were children of the partners in the firm and therefore, it had to be the partners who would have both arranged the gifts and also made the decisions to introduce money into the firm in name of the minors. It was therefore for them to have established the genuineness of the transaction as otherwise, in such circumstances, it would be to allow assessee's to place the minors in between themselves and the firm to escape the consequences in law by citing the rule - revenue cannot look into the source of the source. Further, in the facts of the instant case, the question of examining the source of the source may have been an issue in the quantum proceedings in which as has been candidly stated by Shri. Bansal, the findings recorded against the assessee have attained finality. In the instant proceedings, the penalty was imposed because the assessee did not offer any explanation to the assessing officer in the first instance and then the penalty was sustained because his explanation furnished before the CIT(Appeals) was rejected. The provision of Explanation 1 to section 271 (1) (c) having been thus invoked, no further enquiry was required in the facts of this case. - Decided against assessee.
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