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2015 (11) TMI 1383 - ITAT AHMEDABAD

2015 (11) TMI 1383 - ITAT AHMEDABAD - TMI - Penalty under section 271(1)(c) - CIT(A) deleted penalty - Held that:- The assessee has given reasonable details showing confirmation by the lender, bank statement details etc. while such evidences may not prove the genuineness of the transaction to the hilt , these evidences do indeed show prima facie bonafides of the assessee. These evidences have not been found to be false, incorrect or doubtful. In these circumstances, mainly because the assessee h .....

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No.1313/Ahd/2012 - Dated:- 14-8-2015 - Pramod Kumar AM and Kul Bharat JM For The Appellant : D.V. Singh For The Respondent : None ORDER Per Pramod Kumar AM: By way of this appeal, the Assessing Officer has called into question correctness of order dated 6th March, 2012 passed by the ld. CIT(A), in the matter of penalty under section 271(1)(c) of the Income Tax Act, 1961 ( the Act hereinafter) for the assessment year 1997-98, on the following grounds:- 1. On the facts and in the circumstances of .....

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s may be deemed necessary. Relief claimed in appeal. It is, therefore, prayed that the order of the CIT(A) on the issues raised in the aforesaid grounds be set aside and that of the Assessing Officer be restored. 2. It is second round of proceedings before us, as, in the considered view of the coordinate bench, the assessee was prevented, by sufficient cause, from furnishing requisite information before the Assessing Officer with respect to deposit of ₹ 10,00,000/- received from one Kamles .....

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I have considered the reply of the assessee. In this case, in the reassessment, the addition was repeated as the assessee could not give the name of the Assessing Officer with whom the creditor was assessed and, thus, it was held that the assessee had not discharged its onus in proving the credit worthiness of the creditor. It was the contention of the assessee that the information was available to the Income-tax Department and the Assessing Officer could have made access to this data base. This .....

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charged to Income-tax as the income of the assessee in hat previous year. In the instant case, the assessee had not been able to prove the creditworthiness of the creditor from whom a loan of ₹ 10 lakhs has been taken. It was the further contention of the assessee that because of heavy loss of Asst. Year 1997-98 and also heavy brought forward loss, the assessee did not file any appeal before the ld. CIT (Appeals). It is further stated that non-filing of appeal before the CIT (Appeals) does .....

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ference so far as levy of penalty u/s. 271(1)(c) of the Incometax Act, 1961 is concerned. In this case, the fact remains that the assessee has not been able to establish the credit of ₹ 10 lakhs in the name of Shri Kamleh A Mehta by bringing on record the creditworthiness of the said person. The same amount to filing of inaccurate particulars or concealment of income. Clause (c) of sub-section (1) of section 271 provides for penalty in case where the Assessing Officer is satisfied that any .....

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the returned and assessed income shall be deemed to be the result of concealment/furnishing of inaccurate particulars of income. Explanation 1 states a rule of law that in every case of addition to the returned income, there is a presumption of concealment. This presumption is rebuttable. The onus of rebutting such presumption is on the tax payer. The presumption can be rebutted by offering a plausible explanation. Where no explanation is offered, the assessee would be liable for penalty. In th .....

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es, it is held that the assessee has concealed the particulars of its income and also furnished inaccurate particulars in respect of the income as stated above. As per Explanation 1 to section 271(1), where in respect of any facts material to the computation of total income of any person, additions are made because of the following two reasons, the amount so added shall be deemed to be the income in respect of which particulars have been concealed : [a] Such person fails to offer an explanation .....

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ssee has wilfully, knowingly and without reasonable cause furnished inaccurate particulars of its income and, thus, tried to conceal the income so as to evade payment of tax thereon. Thus, Explanation 1 to section 271 of the Income-tax Act, 1961 is clearly applicable to the case of the assessee for furnishing inaccurate particulars of income and concealing the income for which it is liable to for penalty u/s. 271(1)(c) of the Income-tax Act, 1961. I, therefore, levy a penalty of ₹ 4,60,000 .....

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uld not furnish the detail of the A.O. with whom the creditor was being assessed. The order u/s 143(3) in pursuance of the setting aside of the original order by ITAT was passed on 21.11.2008. On that date, the A.O. could have easily obtained the details of the A.O. from the departmental network. The appellant has been able to file the confirmation letter and bank statement of the creditor. The appellant has also given plausible explanation for not filing any appeal against this assessment order .....

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