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2019 (8) TMI 607 - AT - Income TaxPenalty u/s.271(1)(c) - Introduction of additional capital - Assessee was unable to explain the source for the additional capital introduced - HELD THAT:- A perusal of the reply given by the assessee in the penalty proceedings show that certain details were filed by the assessee before the Assessing Officer. The assessee had also asked for further opportunity to explain the additional capital and the disallowance of the consultancy charges. No other explanation has been given. Though the assessee says that he has submitted the details, what is the nature of the details also not being coming out of the reply filed by the assessee. It is in the absence of the details being filed, the addition has been made in the course of original assessment. It is because of non-production of the details that the addition has got sustained also. A perusal of the order of the Co-ordinate Bench of this Tribunal in the assessee’s own case in the quantum proceedings show that explanation has not been given. The Tribunal has also categorically given a finding that the assessee has not produced any evidence in support of her claim. This being so, even the decision of the Hon’ble Bombay High Court in the case of Nayan Builders and Developers [2014 (7) TMI 1150 - BOMBAY HIGH COURT ] cannot be applied in so far as the very facts that have led to the addition are not being explained by the assessee. However, considering the fact that the assessee has asked for another opportunity to explain her case before the Assessing Officer, in the interest of justice, the issues in the appeal are restored to the file of the Assessing Officer for re-adjudication of the penalty proceedings after granting the assessee adequate opportunity of being heard. The assessee shall provide all the details as called for and as required to substantiate her case for non-levy of penalty U/s.271(1)(c) of the Act. Appeal of the assessee is partly allowed for statistical purposes.
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