TMI Blog2012 (7) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... y the A.O. is required to bring on record certain facts which lead to reasonable conclusion that the amount does represent the assessee’s income which was shown as deposit from other persons. In this case the deposits of Rs.14 lakhs were accepted by the assessee by account payee cheques from the depositors and copies of accounts of these depositors were also furnished to the A.O. during assessment proceedings, thus A.O. neither established that the money in fact belonged to assessee nor proved that the explanation/evidence adduced by assessee was false - penalty imposed is thus deleted - in favour of assessee. - I.T.A. No.741/Ahd/2012 I.T.A. No.742/Ahd/2012 - - - Dated:- 31-5-2012 - Shri D.K. Tyagi, Shri A. Mohan Alankamony, JJ. De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sheet difference and Rs.6000/- out of household expenses totaling to Rs.1,28,680/-. The assessee went in further appeal before the I.T.A.T. and Hon ble I.T.A.T. vide its order dated 08.02.2008 set aside the issue of household expense to the file of the A.O. consequent to this order u/s 143(3) read with Section 254 of the Act was finalized on 19.11.2009 allowing the assessee further relief of Rs.6000/- out of household expenses. 4. As the addition made on account of bogus credit of benami deposits of Rs.14 lakhs, addition on account of interest payment of benami bogus deposits Rs.64,125/-, on account of interest payment to ingenious depositors Rs.64,052/- and household expenses of Rs.32,700/-, a notice u/s 271 (1)(C) of the I.T. Act was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of National Taxtiles Vs. CIT (2001) 249 ITR 125. There is no dispute about the fact that assessee could not substantiate the source of deposits to the satisfaction of the A.O., therefore, an addition was made which was also upheld by Hon ble ITAT. However, the law is now well settled that assessment proceedings and penal proceedings are separate and addition does not automatically leads to imposition of penalty for concealment. Before imposing penalty the A.O. is required to bring on record certain facts which lead to reasonable conclusion that the amount does represent the assessee s income which was shown as deposit from other persons. In this case the deposits of Rs.14 lakhs were accepted by the assessee by account payee cheques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... absence of this, penalty imposed by the A.O. on estimated additions has rightly been deleted by ld. CIT(A) and the order passed by him is hereby upheld. 8. In the result, the Revenue s appeal is dismissed. I.T.A. No.742/2012 9. This is Revenue s appeal against the order dated 27.01.2012 passed in appeal No. CIT(A) XIV/DCIT. Cir.8/42/10-11. 10. The revenue is aggrieved by the action of ld. CIT(A) deleting penalty of Rs.4,45,400/- levied by the A.O. u/s 271(1) (C) of the Act 11. The brief facts of the case are that a penalty of Rs.4,45,400/- @ 100% of tax sought to be evaded was imposed u/s 271(1)(C) of the Act on the following additions made by the A.O. which were confirmed by Hon ble ITAT:- (i) On account of cash cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the A.O. on the basis of estimate without giving any concrete finding for the basis of estimating the household expenses of the assessee. On similar facts ld. CIT(A) order deleting the penalty has been upheld by us for the assessment year 1994-95. For the reasons given by us in ITA No.741/Ahd/2012, the order passed by ld. CIT(A) in deleting this penalty is also hereby upheld. 14. As far as the addition on account of perquisites of LTC and PF contributions is concerned, we find that the details in respect of amount received on LTC and PF contributions were given by the assessee in the return of income and the same were not found to be inaccurate by the A.O. It is only the treatment which has been taken differently by the A.O. The A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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