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2016 (2) TMI 292 - ITAT DELHI

2016 (2) TMI 292 - ITAT DELHI - TMI - Penalty u/s 271(1)(c) - disallowance made on account of expenditure towards payments made to Globextech India (P) Ltd. by the assessee on the basis that due to search and seizure operation conducted at the premises of S.K. Gupta Group of Companies - Held that:- Under the circumstances, it cannot be held beyond doubt that there was concealment of particulars of income or furnishing inaccurate particulars thereof on the part of the assessee towards the additio .....

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assessee - ITA Nos. 555 & 556/Del/2012 - Dated:- 26-11-2015 - SHRI I.C. SUDHIR AND SHRI L.P. SAHU For The Appellant : Shri Ashwani Kumar, CA For The Respondent : Shri Rajiv Ranka, Sr. DR ORDER PER I.C. SUDHIR: JUDICIAL MEMBER In these appeals for the assessment years 2003-04 and 2004-05, the assessee has questioned penalty levied under sec. 271(1)(c) of the Incometax Act, 1961 at ₹ 6,75,465 in 2003-04 and ₹ 15,38,030 in assessment year 2004-05 sustained by the Learned CIT(Appeals). .....

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ities below, material available on record and the decisions relied upon. 5. The relevant facts are that original assessment under sec. 143(3) of the Act was framed. Subsequently, search and seizure operation was carried on S.K. Gupta Group of cases and during the course of search, evidences were available showing that S.K. Gupta Group had about 30 paper companies , one of which was Globextech India Ltd. to which the assessee had paid ₹ 18,38,000 in assessment year 2003-04 and ₹ 42,87 .....

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the same which has been questioned before us. 6. In support of the grounds involving the issue the Learned AR submitted that during the relevant previous year claimed deduction for expenses on account of contractual payment for job work amounting to ₹ 18,38,000 in assessment year 2003-04 and ₹ 42,87,200 in assessment year 2004-05 to Globextech India Ltd. In the course of reassessment proceedings , in response to the query raised from the Assessing Officer, the assessee vide letter d .....

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ed on payment of job work through Globextech India Ltd. The Assessing Officer, however, did not agree with the above explanation of the assessee during the penalty proceedings and levied corresponding penalty for the assessment year under consideration under sec. 271(1)(c) of the Act which has been upheld by the Learned CIT(Appeals). 7. The Learned AR contended that the assessee has suo-moto admitted the said addition on account of non-availability of relevant evidences and without appreciating .....

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Ltd. - 322 ITR 158 (S.C); ii) CIT vs. J.K. Synthetics Ltd.- 2109 ITR 267 (Del.); iii) CIT vs. Globe Sales Corporation - 196 CTR 187 (Del.); iv) Jai Narayan Babu Lal vs. CIT - 170 ITR 399 (Bom.); 8. The Learned AR also cited the decisions Nagpur Bench of the ITAT in the case of Sonu Liquor Traders vs. DCIT - 100 ITD 455 (Nagpur) holding that the fact the assessee has accepted assessment of income to avoid litigation would not automatically lead to conclusion that it had concealed income. 9. The .....

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alment of particulars of income or furnishing inaccurate particulars thereof on the part of the assessee towards the said disallowances. 10. In rejoinder, the Learned AR submitted that nothing incriminating was found against the assessee during the course of search at the premises of S.K. Gupta Group of Companies. The Learned AR also referred copy of ledger account of Globextech India Ltd. in the books of assessee made available at page Nos. 7 to 9 of the paper book which was furnished by the as .....

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re there is evidence beyond doubt that towards the disallowance/addition made, there was concealment of particulars of income or furnishing inaccurate particulars thereof on the part of the assessee. In the present case, the Assessing Officer has levied the penalty on the disallowance made on account of expenditure towards payments made to Globextech India (P) Ltd. by the assessee on the basis that due to search and seizure operation conducted at the premises of S.K. Gupta Group of Companies, it .....

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