TMI Blog2015 (7) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... peal is filed by the Revenue. It is directed against the order passed by the CIT(A) dated 01.10.2013 for A.Y. 2005-06. The grounds of appeal read as under: Whether on the facts and in circumstances of the case and in law the Ld. CIT(A) was right in deleting penalty levied u/s. 271(1)(c) of the Income-tax Act 1961 of ₹ 12,09,516/- without appreciating that quantum addition was made on the basis of information received that the assessee had advanced loan, sources of which could not be explained by the assessee during the assessment proceedings, interalia, the assessee had filed inaccurate particulars of income and also concealed the particulars of income under the provisions of section 271(1)(c) of the Income-tax Act, 1961. 2. The impugned penalty is levied on an addition of ₹ 36,80,000/-, which comprises of amount received by the assessee from the following persons: Name Amount Jagdishji 5,00,000 Laxmanlal 5,00,000 Mohan Shingh 5,00,000 Rupalalji 5,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is seen from the audit reports filed along with return for assessment year 1996-97 that rent for pocklain machine has been debited at ₹ 3,69,600/- in the trading account of Lovely Marble. Hire charges under the head for pocklain machine an amount of ₹ 50,937/- is debited for assessment year 2001-02 and then hire charges for pocklain machine for assessment year 2002-03 are Nil 18. In view of this the very premise taken by the appellant that the cash amount which was advanced to M/s. Apsara Jewellers was received from the parties to whom it was advanced much earlier in somewhere in 1997 is not sustainable for two reasons: (1) The appellant has not been able to prove the amount given and received from them satisfactorily. The only thing in her favour was that the transaction was made in cash because there were no bank branch in the near by area where these persons are residing and working. Though the appellant herself is in a city like Mumbai she could not substantiate with any evidence the withdrawal if any made by her to that extent made for that year including bank statements, cash book claimed to be maintained by business and capital account for releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant are sustained. (emphasis implied) 3. On the basis of the confirmation of addition by the CIT(A), impugned penalty has been levied by the AO. The aforementioned order of the CIT(A) was challenged by the assessee in further appeal, which has been decided by the Tribunal vide its order dated 17.06.2015 and it was found that aforementioned findings of the CIT(A) in the quantum proceedings were contrary to the facts available on record as the aforementioned amount of ₹ 35 lacs was not outstanding in the balance sheet for A Y 2005-06. Therefore, the order passed by the learned CIT(A) was set aside and the matter was restored back to the file of the AO with the following observations: 5. Before us, the Ld A.R demonstrated that the assessee has been filing personal balance sheet regularly along with her return of income and in AY 2004-05, the break up details of advance amount of ₹ 35.00 lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier years and on completion of work the amounts were received back by the assessee. The evidence filed before the AO, as per the submissions recorded by the learned CIT(A) is as under: During the course of assessment proceedings as well as during the course of appellant proceedings and also during the penalty proceedings the appellant had given party wise details of advance as given above to following persons along with necessary evidence as under:- 1. MOHAN SING RAJPUT: The amount is given to Shri Mohan Sing Rajput on 10/01/98 to carry out the initial working and that they were given mobilization advance in term of deposit and Shri Monhan Singh Rajput was required handle the extraction activities which interalia include arrangements of the workers required. The copy of agreement attached herewith for your ready reference. The appellant has also filed confirmation of accounts appearing in the assessee s book duly confirmed by the Shree Mohan Singh Rajput. Appellant had also requested AO If you need You can also verify the genuinely of the above transaction by issuing the summons or notice u/s. 131 or 133(6) of the income tax act and verify accordingly 2. GORD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m. Appellant has also requested AO if you need You can also verify the genuinity of the above transaction by issuing the summons or notice u/s. 131 or 133(6) of the income tax act and verify accordingly. 6. VIJAY SING : The amount was given to him on 15/7/97 to carry out the initial working and that they were given mobilization advance in term of deposit and he were required to handle activities which interalia include arrangements of the workers required. The copy of agreement attached herewith for your ready reference. The appellant has also filed confirmation of accounts appearing in the assessee s books duly confirm by him. Appellant has also requested AO if you need You can also verify the genuinity of the above transaction by issuing the summons or notice u/s. 131 or 133(6) of the income tax act and verify accordingly. 7. RUPALAL MEGHWAL : The amount was given on 05/1/98 to carry out the initial working and that they were given mobilization advance in term of deposit and he were required handle the extraction activities which interalia include arrangements of the workers required. The copy of agreement attached herewith for your ready reference. The appellant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iate that the appellant is a lady and that calling her to produce the people would not be possible without any legal rights and therefore it was on AO to have issued summons of commission to verify the genuineness of those transactions for which detailed submissions were made. Considering the aforementioned evidence and various judicial pronouncements, which have been referred in detail in the order passed by the CIT(A), he has recorded the following conclusion 6. I have gone through the submission of the appellant as well as order of the A.O. levying the penalty and find merit in the appellant s case. In the present case, the appellant had deposited cash in her bank account which was stated to be the amount received back by the appellant from advances given by her in earlier years. It is also true that the appellant had been showing such advances as outstanding year after year and that during the year under consideration the appellant has reduced the aforesaid debt as outstanding. Thus, there is a reduction of advances to the extent of amount shown to have been received by the appellant. These facts are neither controverted nor disproved. The appellant has also explaine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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