Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 632 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Scrutiny under CASS - addition of unexplained capital of the partner of the firm u/s 68 - AO also disallowed interest - second round of assessment,the assessee again could not explain the source of capital introduction - HELD THAT:- From the information received by the Directorate of Income-tax (Investigation), it was found that the assessee had received the bogus gift of certain amount which, in fact, was the income of the assessee introduced in her funds in the shape of the gifts. As the assessee was not able to produce said persons for confirmation of gift and the creditworthiness of the donors could not be proved by the assessee, the Assessing Officer made addition under section 68 which was confirmed in appeal. Held that since the assessee failed to prove the creditworthiness of the donors there was no illegality in the orders of the authorities below. The same proposition of law is applicable to the facts of the present case as the assessee failed to prove the creditworthiness of the cash deposits (Capital)in the partnership firm and therefore was no illegality in the orders of the authorities below as well in the present case. No illegality in the orders of the authorities below as well as in the impugned order of the Tribunal and since the assessee/ appellant has failed to prove the creditworthiness of the partners as well as failed to place any evidence in support of its contention in respect of the issues which are raised before the Tribunal, therefore, we find no error in the order of the ld. CIT(A). The order of the ld. CIT(A)is confirmed and the appeal filed by the appellant is dismissed as the ld. CIT(A) has recorded a categorical finding of facts. Following the case of Jagmohan Ram Chandra Vs. CIT [2004 (8) TMI 46 - ALLAHABAD HIGH COURT] and Smt. Sheela Ahuja [2017 (11) TMI 686 - ALLAHABAD HIGH COURT] we hereby upheld the order the ld. CIT(A) and confirmed the levy of penalty u/s 271(1)(c) - Decided against assessee.
|