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2018 (7) TMI 289 - AT - Income TaxLevying penalty u/s. 271(1)(c) - additions made in the assessment order u/s. 143(3) - assessee has been found to be in the habit of introduction of unaccounted cash in his books of accounts - Held that:- We note that at the time of assessment the assessee had given a consent to add the loans in their income to avoid litigation and save valuable time but which does not mean that the amount entered in the books in name of different persons are unverifiable therefore it cannot be treated as unsubstantiated cash deposit. AO has wrongly alleged in penalty order that the assessee contended the persons have genuinely advance the money for purchase of goods but due any reasons they have taken their money back which they have advanced earlier lack of their addresses it is very difficult to either present them or get their confirmations. As regard the second addition was made due to cash payment of ₹ 35,000/- it cannot be treated as concealment of income or furnishing of inaccurate particulars because the payment was made to M/s Shakurnbhary Straw Products as accepted in assessment order which is also supported by voucher. In this regard the only default was contravention of the provision of section 40A(3). Since there was no concealment of income nor furnishing of inaccurate particulars therefore penalty cannot be imposed on this point. The third addition was made by disallowing the provision of salary payable which was made for salary expenses incurred genuinely for previous year, at the time of assessment the assessee could not produce the person to whom the salary was given because that person was left job therefore consent of addition had been given, but this does not mean that assessee had concealed income or furnished inaccurate particulars. However, later, the assessee had received the confirmations from the persons to whom the amount of salary was given and produced the same before the Ld. CTI(A), which was not considered. Thus there was no concealment of income nor furnishing of inaccurate particulars on the above points because mere non-acceptance of explanation offered cannot form a basis for the satisfaction of assessing authority to the effect that the assessee has concealed particulars of his income. - Decided in favour of assessee.
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