TMI Blog2014 (1) TMI 856X X X X Extracts X X X X X X X X Extracts X X X X ..... ered before the tax authorities and paid the tax imposed by the Assessing Officer in regard to the addition - In absence of further appeal to the Commissioner of Income Tax(A) or to the Tribunal, the quantum assessment order has reached to its finality but the assessment order is not conclusive evidence that the amount assessed was in fact the income of the assessee and it cannot be presumed that there was a conscious concealment or act of furnishing of inaccurate particulars by the assessee – Decided in favour of Assessee. - ITA No. 3194/Del/2012 - - - Dated:- 20-6-2013 - Shri B. C. Meena And Shri Chandra Mohan Garg,JJ. For the Appellant : Shri Rakesh Gupta, Ashwani Juneja, Somil Agarwal For the Respondent : Ms Y. Kakkar, Sr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in levying penalty u/s 271 (1 )( c) is bad in law being beyond jurisdiction and barred by limitation and contrary to the principles of natural justice and has been passed by recording incorrect facts and findings and without giving adequate opportunity to the assessee and the same is not sustainable on various legal and factual grounds. 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not quashing the impugned penalty framed by Ld. AO that too without recording mandatory "satisfaction" as per law. 6. That the assessee craves the leave to add, alter or amend the grounds of appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ree Colonizers Pvt. Ltd. (copy of ledger accounts are being enclosed). But our view was not accepted at the time of assessment and enhance our income. Regarding second addition we had fully explained agricultural income but proof of sale of crop could not be produced because crop was sold to various persons and it is very difficult to get proof or confirmation from them." 4.1 Assessee's above version was considered carefully and found unacceptable on the grounds of following facts:- i) The cash receipts as' detailed in the above table amounting Rs. 733,000/- was found to be unrecorded in the cash book; ii) During the course of assessment proceedings, assessee could not furnish the necessary documents with regard to his version in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the action of the Assessing Officer in levying penalty without assuming jurisdiction as per law and without considering the facts and circumstances of the case. The counsel further submitted that the impugned penalty order being illegal and void ab initio has been passed being contrary to law as the assessment order framed u/s 143(3) of the Act dated 06.12.2010 was also illegal, beyond jurisdiction and void ab initio. The counsel further submitted that the additions were made on voluntary surrender and consent of the assessee to avoid further litigation and to buy mental peace and the same cannot be considered as furnishing of inaccurate particulars of income or concealment of any particular of income which cannot be said as conscious conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we observe that the addition u/s 68 of the Act was made by the Assessing Officer when the assessee himself offered to include this amount in his total income and consented to pay the tax. Another addition of Rs. 1 lakh was also made when the assessee voluntarily preferred to include Rs.1 lakh to his total income. The contention of the counsel of the assessee is that the assessee voluntarily surrendered and consented to pay tax to avoid further litigation and to buy peace of mind. Per contra, the DR has raised an objection that when the assessee failed to establish genuineness of agricultural income, then he surrendered to the tax authorities and this amounts to conscious concealment on the part of assessee. 7. After careful consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 1 to section 271 of the Act do not make the assessment order conclusive evidence that the amount assessed was, in fact, the income of the assessee and that the assessee did not satisfactorily explain the cash credits by producing evidence and documents. 8. In the case in hand, we observe that the assessee consented to pay tax to avoid further litigation and to buy mental peace and instead of offering further explanation, the assessee voluntarily surrendered before the tax authorities and paid the tax imposed by the Assessing Officer in regard to the impugned addition. In absence of further appeal to the Commissioner of Income Tax(A) or to the Tribunal, the quantum assessment order has reached to its finality but the assessment order is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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