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2019 (8) TMI 771 - AT - Income TaxAddition on account of cash deposit in Bank Account - non production of parties from whom cash received - HELD THAT:- The AO in the instant case made addition on the ground that the assessee could not explain the source of such cash deposits in the bank account and the parties from whom assessee has shown to have received cash have denied/not confirmed any transaction with the assessee. I find the Ld. CIT(A) upheld the action of the AO, the reasons of which have already been reproduced in the preceding paragraph. It is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to produce those parties before the AO to substantiate the transactions by them with the assessee so as to explain the cash deposits in the bank account. Considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of the AO with a direction to give one final opportunity to the assessee to substantiate its case by producing the various parties in question to substantiate the cash deposit in the bank account. Penalty u/s 271(1)(c) - quantum addition restore to AO - HELD THAT:- AO levied penalty on account of addition made by him being unverified cash deposit which has been upheld by the CIT(A) - Since, the quantum addition has been restored to the file of the AO, therefore, the penalty so levied by the AO and upheld by the CIT(A) does not survive. Accordingly, the same is cancelled. However, the AO is at liberty to initiate fresh penalty proceedings u/s 271(1)(c) after completion of the assessment in the set aside proceedings
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