TMI Blog2015 (2) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... concealment of income or filing inaccurate particular of income and that certain disallowances/additions could legally be made in assessment proceedings on the preponderance of probabilities but no penalty could be imposed u/s. 271(1)(c) of the Act on the preponderance of probabilities and the Revenue has to prove that the claim made by the Assessee was not genuine. In the present case LD. AR has placed on paper book the table of documentary evidence filed in respect of sundry creditors like ledger accounts, purchase bills, confirmations and has thus discharged the initial onus cast upon the Assessee. On such evidences furnished no inquiry was conducted by AO. The purchases from the creditors and the corresponding sales have not been do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levied penalty of ₹ 9,66,090/- u/s. 271(1)(c) of the Act. Aggrieved by the order of A.O., Assessee carried the matter before CIT(A) who vide order dated 01.02.2010 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;- 4. Before us, ld. A.R. submitted that though various grounds have been raised but the only issue is with respect to levy of penalty u/s. 271(1)(c) of the Act. 5. Before us, ld. A.R. reiterated the submissions made before A.O and ld. CIT(A) and further submitted that A.O levied penalty on the addition of ₹ 26,28,813/- made u/s. 68 in respect of sundry creditors outstanding at the end of the year. He submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he A.O to carry out further inquiries based on the details furnished by the Assessee. He further submitted that in spite of filing of various evidences Assessee surrendered the income and filed the revised return offering the said creditors as income just to by peace of mind and to avoid further litigation. He further submitted that neither the purchases made from the creditors nor the corresponding sales have been doubted and further the payments have been made to creditors in subsequent years. He further submitted that quantum proceedings and penalty proceedings are distinct and separate. Section 68 creates a legal fiction whereby cash credits received are deemed to be unexplained for want of necessary evidences and consequently addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de in assessment case of an assessee is different from the penalty imposed on account of concealment of income or filing inaccurate particular of income and that certain disallowances/additions could legally be made in assessment proceedings on the preponderance of probabilities but no penalty could be imposed u/s. 271(1)(c) of the Act on the preponderance of probabilities and the Revenue has to prove that the claim made by the Assessee was not genuine. In the present case LD. AR has placed on paper book the table of documentary evidence filed in respect of sundry creditors like ledger accounts, purchase bills, confirmations and has thus discharged the initial onus cast upon the Assessee. On such evidences furnished no inquiry was conducted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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