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2015 (7) TMI 723 - ITAT CHENNAI

2015 (7) TMI 723 - ITAT CHENNAI - TMI - Addition towards unexplained bank deposits - Penalty proceedings u/s.271(1)(c) - CIT(A) deleted penalty levy - Held that:- If any amount is deposited in bank account of the assessee, the assessee has to explain the source from which it was deposited. In the present case, the assessee is not able to explain the deposits. According to the assessee, the assessee is not educated and return subsequent to the search was filed by a Chartered Accountant who obviou .....

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truly and fully while filing the return of income. The assessee cannot shift his responsibility to his Chartered Accountant. Further, the assessee stated it was ill advised by the Chartered Accountant without mentioning the name of the Chartered Accountant. It is not brought on record what advice was given by the Chartered Accountant on this issue. In our opinion, the assessee has concealed particulars of income and also not given any bonafide explanation for this. Hence levy of penalty u/s.271( .....

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that it was shown in the hands of ex-husband. Hence, this issue is remitted back to the file of the Commissioner of Income Tax (Appeals) for fresh consideration. Decided partly in favour of Revenue for statistical purposes. - I.T.A. Nos.956, 957, 958 & 959/Mds/2013 - Dated:- 9-7-2015 - Shri Chandra Poojari & Shri V. Durga Rao, JJ. For the Petitioner : Shri. P. Radhakrishnan, IRS, JCIT. For the Respondent : Shri. S. Sridhar, Advocate ORDER PER CHANDRA POOJARI, ACCOUNTANT MEMBER These appeals .....

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wards unexplained bank deposits. Later penalty proceedings u/s.271(1)(c) towards these additions were initiated. In the course of penalty proceedings, the assessee has not offered any explanation regarding source of bank deposits inspite of giving adequate opportunity of hearing to the assessee. The penalty of E2,46,284/- was levied u/s.271(1)(c) of the Act. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). 2.1 The Commissioner of Income Tax (Appeals) d .....

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ucated and return subsequent to the search was filed by a Chartered Accountant who obviously has not made out a proper disclosure. The intention of the assessee was to make a proper disclosure, come out clean and pay the taxes. However, it was submitted that it was only the mistake of the Chartered Accountant and not of the assessee in making proper disclosure. Later the assessee accepted for the addition to purchase peace and to avoid prolonged litigation. In our opinion, this contention of the .....

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come and also not given any bonafide explanation for this. This case is squarely covered by the judgment of Supreme Court in the case of Mak Data (Pv) Ltd. vs. CIT 358 ITR 593 wherein it was held that the assessee had only stated that it had surrendered the additional sum of ₹ 40,74,000 to avoid litigation, buy peace and to channelize the energy and resources towards productive work and to make amicable settlement with the Income-tax Department. The statute did not recognize those types of .....

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an income inclusive of the amount which was surrendered later during the course of the assessment proceedings. Consequently, it was clear that the assessee had no intention to declare its true income. It is the statutory duty of the assessee to record all its transactions in the books of account, to explain the source of payments made by it and to declare its true income in the return of income filed by it from year to year. The Assessing Officer had recorded a categorical finding that he was s .....

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957/Mds/2013, assessment year: 2006-2007. In this year, the facts of the case are that the assessee had deposited E11,00,000/-, out of which E6,00,000/- deposited in cash and E5,00,000/- deposited by Cheque in the ICICI bank account no.602601501262. The assessee failed to explain the source of deposit. An addition made on this count and later penalty u/s.271(1)(c) was levied at E3,69,947/-. Since facts in this year is similar to assessment year 2005-06, as discussed in the earlier assessment yea .....

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the total income at E47,89,652/-. The Assessing Officer made an addition of E40,00,000/- relating to credits in ICICI bank account number 602601501262. The assessee was unable to account for these credits other than to submit that this money belonged to her ex-husband Shri. S. Sathyanarayana. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). 5.1 The Commissioner of Income Tax (Appeals) observed that the records relating to Shri. Sathyanarayana wase cal .....

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nts the assessee. Further, the Commissioner of Income Tax (Appeals) observed that the Assessing Officer on 22.12.2009, he made a test check and the case was heard. The Chartered Accountant filed LIC receipts, TDS certificates, bank statements of ICICI, IOB bank, Municipal Tax receipts, statements of accounts and a note on agricultural income. In the statement of affairs, the Commissioner of Income Tax (Appeals) found that the last item on the asset side narrates deposit in the account of the ass .....

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