TMI Blog2015 (9) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... have earned and saved the amount which he has gifted to his son in law. Further it is a well settled law that penalty proceedings are entirely distinct from assessment proceedings and however relevant and good, the findings in assessment proceedings may not be conclusive so far as penalty proceedings are concerned. It is well settled that the parameters of judging the justification for addition made in the assessment proceedings is different from the penalty imposed on account of concealment of income or filing of inaccurate particulars of income and that certain disallowance/additions could legally be made in the assessment proceedings on the preponderance of probabilities but no penalty could be imposed u/s.271(1)(c) of the Act on prepon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted for scrutiny and thereafter the assessment was framed u/s. 143(3) vide order 16-12-2009 and the total income was determined at ₹ 3,04,800/-. Aggrieved by the order of AO, Assessee carried the matter before CIT(A) who vide order dated 02-05-2011 dismissed the appeal of the assessee. Aggrieved by the aforesaid order of CIT(A), Assessee is now in appeal before us and has raised the following grounds:- 1. On the facts and circumstances of the case, the Ld. CIT(A) has grossly erred in conf irming the levy of penalty of ₹ 8,161/- u/s. 271(1)(c) of the Act, in respect of gif t of ₹ 40,000/- received by the appellant from his father-in-law and which has been voluntarily offered as income, which is absolutely erroneous and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iling return of income, since his income is below taxable income, and also has no bank a/c. In the said affidavit, Shri Chunawala has also stated that the appellant is husband of his daughter and that the statement given by him in the affidavit is true and correct and he is in the knowledge that filing of wrong affidavit is an offence. The above amount was surrendered by the appellant during the course of assessment proceedings for the reason that he does not have full evidences in support of bona fides of the gift. The addition has also been made for the same reason. The genuineness of the gift has not been established; as the donor's capacity to make gift of the above amount has not been established. In order to levy penalty u/s 271(l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re us Ld. DR supported the order of AO and CIT(A). In the written submissions, the assessee has submitted that the gift was received in cash from his father-in-law who was aged about 61 years. It was further submitted that during the course of assessment proceedings, proof of identity of the donor in the form of driving license of the donor, notarized affidavit of the donor affirming the gift along with complete name, address, amount was submitted. It was further submitted that assessee had voluntarily and suo moto surrendered the gift of ₹ 40,000/- for tax to buy mental peace of mind and to avoid litigations. It was also submitted that the Assessee has completely discharged primary onus cast to the assessee to prove the identity and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to demonstrate that the donor could not have earned and saved the amount which he has gifted to his son in law. Further it is a well settled law that penalty proceedings are entirely distinct from assessment proceedings and however relevant and good, the findings in assessment proceedings may not be conclusive so far as penalty proceedings are concerned. It is well settled that the parameters of judging the justification for addition made in the assessment proceedings is different from the penalty imposed on account of concealment of income or filing of inaccurate particulars of income and that certain disallowance/additions could legally be made in the assessment proceedings on the preponderance of probabilities but no penalty could be imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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