TMI Blog2014 (6) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... ions u/s 68 of the IT Act – the deeming provisions cannot be extended to hold that the assessee has concealed the income especially when the assessee has placed on record certain evidences such as gift declarations and bank accounts to show that the gift was received under bona fide belief that the same was a genuine gift - it was taxed during assessment proceedings but the penalty u/s 271(1)(C) cannot be levied automatically – thus, the order of the CIT(A) is set aside – Decided in favour of Assessee. - ITA No. 19/Ahd/2013 - - - Dated:- 22-8-2013 - Shri Mukul Kr. Shrawat And Shri A. K. Garodia,JJ. For the Petitioner : Shri O. P. Batheja, Sr. D. R. For the Respondent : Shri Mehul Shah, A.R. ORDER Per Shri Mukul Kr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclosure in support of the claim. The AO was not convinced and noted that the pay orders were not directly issued in favour of the assessee but in respect of some other persons. According to him, several pay orders were issued from one OD Account. After the detailed discussion, the impugned amount of Rs.10,00,000/- was taxed by invoking the provisions of Section 68 of the IT Act. 2.1 During penalty proceedings, it was noted by the AO that an appeal was preferred by the assessee before learned CIT(A)-III, Surat. However, without any success the addition under Section 68 of the IT Act was confirmed. At this conjecture, learned AR has fairly stated before us that no further appeal was filed by the assessee. The AO has cited few case laws an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by those donors. With this factual background, we have carefully perused the decision of National Textiles (Guj) (supra), wherein the Court has observed that in order to justify the levy of penalty, two factors must co-exist, (i) there must be some material or circumstances leading to the reasonable conclusion that the amount does represent the assessee s income. It is not enough for the purpose of penalty that the amount has been assessed as income, and (ii) the circumstances must show that there was animus i.e., conscious concealment or act of furnishing of inaccurate particulars on the part of the assessee and in order to justify levy of penalty for addition of cash credits, there must be some material or circumstances leading to rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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