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Mrs. Kamlesh Madan Versus ITO-Ward-45 (4) , New Delhi

2016 (1) TMI 404 - ITAT DELHI

Penalty u/s 271(1)(c) - undisclosed sales/purchase figures - Held that:- The only facts that the assessee could not produce all sales/purchase bills, does not mean that the detail furnished is in accurate in any manner. These facts were also told to CIT, Appeal during the penalty proceedings. In spite of not having any shortcomings/discrepancies and to end the proceeding amicably, she had offered to surrender a sum of ₹ 5,00,000/- on agreed basis.as additional income to buy peace with the .....

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me and furnishing inaccurate particular u/s 271(1)© is not justified and needs to be deleted.

Levy of penalty in this case is not justified. Accordingly, set aside the orders of the authorities below and delete the levy of penalty in dispute as section 271(1)(c) postulates imposition of penalty for furnishing of inaccurate particulars and concealment of income. On the facts and circumstances of this case the assessee’s conduct cannot be said to be contumacious so as to warrant levy of .....

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are that the case of the asssessee was selected for scrutiny under CASS on the information that assessee has deposited cash amount in savings bank account. During the assessment proceedings it was found out that total cash deposit in two savings bank account was ₹ 26,62,750/- which was claimed to be out of sale proceeds of the clothes. She has further disclosed that the total purchases of clothes were ₹ 20,67,845/-. Since the turn over of the cloth business was not more than ₹ .....

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T. Act for these additions. During the penalty proceedings it was argued before the Id.AO that to avoid litigation, the assessee has surrendered the amount. AO rejected the explanation of the assessee on the ground that when AO detected the deposit of cash in savings bank account, assessee has declared the income under that head. There was no evidence regarding the sale and purchase of clothes. No receipt book was furnished before the AO. Thereafter, the AO initiated penalty proceedings and impo .....

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s old was a school teacher. Being on the verge of retirement, she started doing part time retail business of cloth from the year under consideration only from her residence. Beside salary she earned profits from this cloth business. As being a teacher she was filling her Income tax returned herself without any professional help and thus she was under the bona fide belief that business income carried out under sole proprietorship was not to be part of individual income as the same was below the t .....

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t the intention of the assessee to disclose the full facts was apparent from the fact that the assessee was asked to give details of ₹ 11,01,000/- deposited in IDBI Bank as per AIR whereas she has disclosed the other bank account with Axis bank in which the cash relating to business was deposited. Thus it is very clear that the Axis bank account or cash deposited in this bank was voluntary declare by the assessee and not pointed out/detected by the department as alleged in the penalty orde .....

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rchase bills and Cash memos, bank statements. Being small business most of the sales and purchase was made in cash. The assessee has submitted details of Month wise sales, Purchase, cash flow statement, affidavit etc. during the assessment proceeding itself. The Statement of the Assessee was also recorded on oath wherein she admitted that she was carrying on the business of cloth with her friend/employee. Hence the assessee has malntalned all the necessary records from which the sales/purchase f .....

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ny defects in them. The only facts that tlie assessee could not produce all sales/purchase bills, does not mean that the detail furnished is in accurate in any manner. These facts were also told to CIT, Appeal during the penalty proceedings. In spite of not having any shortcomings/discrepancies and to end the proceeding amicably, she had offered to surrender a sum of ₹ 5,00,000/- on agreed basis.as additional income to buy peace with the department and the Id., A.O. accepted the said offer .....

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opy; is not justified and needs to be deleted. In support of his contention he relied upon the following case laws:- Devsons Private Ltd. vs. CIT 329 ITR 483 - CIT vs. Deeksha Holdings Ltd. 196 Taxman 183 - CIT vs. Punjab Tyres (1986) 162 ITR 517 (MP) - CIT vs. Moti Lal & Co. (1990) 184 ITR 288 - ACIT vs. Smita Commercial & Investment Private Limited 90 Taxman 275 (Delhi); (2000) 246 ITR 216 (Del.) - ACIT vs. Smt. Geeta Devi (2001) 79 ITD 347 (Del.) 6. On the other hand, Ld. DR relied up .....

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2 In this regard, I find that the facts and circumstasnces of the present case are similar and identical to the case laws cited by the Ld. Cousnel of the Assessee. 7.3 In the case of Devsons Private Ltd. vs. CIT 329 ITR 483 it has been held that figure arrived at by the AO pertaiing to the income of the assessee was the figure disclosed by the assessee himself. The ratio of the case was that the mere omission from the return of an item of receipt does neither amount to concealment not deliberate .....

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