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2021 (5) TMI 245 - AT - Income TaxPenalty under section 271(1)(c) - Addition on account of non-genuine gifts in absence of sufficient evidence - HELD THAT:- In appeal before the Tribunal, the matter was restored to the AO with the direction to assessee to furnish complete evidences. In restoration proceedings, the assessee in response to show cause notice furnished the details of donors along with their PAN and stated that now the donors are co-operating with the assessee and that the assessee has offered the amount of gift as an additional income in revise return of income. As noted that the AO neither accepted the revised return of income nor investigated about the creditworthy of donor and genuineness of donor by issuing any notice under section 133(6) of the Act or summon under section 131 of the Act. The AO simply held that assessee concealed the income. We have further notices that the assessee voluntarily offered the amount of gift as additional income, therefore, the assessee has no right to challenge the action of AO in holding the gift as non-genuine. Penalty proceedings are separate and independent. It is an admitted fact that assessee offered the additional income, though, after issuing notice under section 142(1) by AO. Assessee was having in position of certain evidence in the form of declaration, details of donor and PAN number which were furnished the AO. It is also an admitted fact that no efforts were made by AO by issuing any notice to the donor under section 133(6) of the Act or any summon under section 133(1) of the Act. Facts remaining same that a gift received by assessee was treated as non-genuine gift for the want of complete evidence. In our view, this is a case where the assessee made a bonafide claim, it was accompanying with certain documentary evidence, and however, it was not conclusively proved for the want of confirmation from donor. A.O. also made no efforts to bring and adverse evidence on record. When the assessee mad a claim which was coupled with evidence, though it was not conclusively proved, it cannot be a fit case for levy of penalty under section 271(1)(c) of the Act. Therefore, we direct the A.O. to delete the penalty under section 271(1)(c) - Decided in favour of assessee.
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