GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (4) TMI 959 - ITAT JAIPUR

2016 (4) TMI 959 - ITAT JAIPUR - TMI - Penalty u/s 271(1)(c) - addition u/s 68 - Held that:- It is undisputed fact that these cash creditors are opening as on 01/4/2006 and not pertained to year under consideration. The ld Assessing Officer issued notice in quantum proceeding U/s 133(6) of the Act. The parties concerned filed confirmations in some of the cases. It is also fact that the assessee paid the outstanding during the year and in subsequent year but could not prove beyond doubt before th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dated 26/05/2011 of the learned CIT(A), Ajmer for A.Y. 2007-08. The effective grounds of appeal are as under:- 1. On the facts and in the circumstances of the case the ld CIT(A) has grossly erred in confirming the penalty of ₹ 13,77,028/- levied U/s 271(1)(c) of the Income Tax Act, 1961. 1.1 That the ld CIT(A) has erred in upholding the penalty levied U/s 271(1)(c) of the Income /Tax Act, 1961 without appreciating the fact that the income was surrendered by the assessee during the course o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aid the due tax thereon thus there remained no income on which tax sought to be evaded could be calculated which fact was not appreciated by the ld CIT(A). 2. The assessee is engaged in the business of purchase of sale of marble and granite, tiles and slabs. The return of income was filed on 30/07/2007 declaring total income of ₹ 2,50,070/-. During the course of scrutiny assessment, the Assessing Officer made addition of ₹ 20,21,897/- U/s 41(1)(a) of the Income Tax Act, 1961 (in shor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

; 40,83,404/-, which includes unsecured loan of ₹ 1,48,500/- and ₹ 19,12,007/- U/s 68 of the Act. The assessee was unable to produce the cash creditors before the Assessing Officer and voluntarily surrendered these amounts to avoid the litigation. The outstanding of ₹ 20,21,897/- shown in the books of account, for which cash payment had been made and necessary evidences were not available with the assessee, which is also surrendered voluntarily before the Assessing Officer to a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tigation. (ii) CIT Vs M Pachamthu & Ors (2008) 214 CTR (Mad) 524 for surrender under the survey. (iii) CIT Vs S.I. Paripushpam (2001) 249 ITR 550 (Mad) for agreed addition. (iv) CIT Vs D&H Secheron Electronics Ltd. (2006) 203 CTR (MP) 164 for surrender made. (v) Gebilal Kanhialal (HUF) Vs ACIT (2004) 270 ITR 523 (Raj.) for surrender made. (vi) CIT Vs. Badrilal Chaturbhuj (2004) 265 ITR 329 (Raj) for buy peace. (vii) CIT Vs Rajnish Nath Aggarwal (2008) 219 CTR (P&H) 590 for surrender .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee by supplying the copy of reply received from the various parties. It is then the assessee came forward with the surrender letter and not suo moto. If the assessee s intention was bonafide, why he made surrender in last. The case laws relied upon by the assessee are also not squarely applicable, which was applicable on surrender voluntarily with bonafide belief. In assessee s case, the investigation of department as compelled the assessee to surrender amount for taxation as no other .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Co. Ltd. (2008) 302 ITR 239 (Ker). (v) Komal Basha Vs DCIT (2009) 316 ITR 0058 (Mad). After considering the above case laws, the Assessing Officer imposed penalty U/s 271(1)(c) of the Act for concealing the particulars of income and furnishing inaccurate particulars of income at ₹ 13,70,028/-, which is 100% of tax sought to be evaded. 3. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had dismissed the appeal by observing th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd all the facts relating to the same and material to the computation of his total income have been disclosed by him. The penalty proceedings are independent proceedings. The penalty order should contend the reasons for its conclusion but this does not mean that the Assessing Officer is required to bring on record the additional or new evidences, which was not part of the regular assessment. Where the assessment order itself contends the fact which justified an inference of the concealment, pena .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rom these parties and intimated the appellant about the result of such enquiries that the appellant agreed to surrender this amount. In such a situation Assessing Officer has rightly concluded that appellant furnished inaccurate particulars of his income, in the return filed by him. It cannot be held that the surrender of income by appellant was voluntary, because the surrender was made only after detection of the same by AO. In this case it is not established that the conduct and explanation of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng Mills Ltd. (c) [2008] 302 ITR 0239 (Kev) - CIT V/s Guruvijay Kuri Co. Ltd. (d) [2009] 316ITR 0058 (Mad) - Komal Basha V/s DCIT. The ld CIT(A), therefore hold that AO is justified in imposing penalty of ₹ 13,77,028/- in this case and the same is confirmed. Ground No. 2 is thus dismissed. 4. Now the assessee is in appeal before us. The ld AR of the assessee has submitted that in balance sheet, the assessee had shown unsecured loan in the name of 8 persons received from them in amount belo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion. The assessee has disclosed these cash creditors in the books of account and balance sheet. The said unsecured loan did not pertain to year under appeal. There were opening balances of unsecured loan taken by the assessee in preceding assessment year and not in the year under appeal. The opening balance cannot be added U/s 68 of the Act during the year under consideration but the assessee had not raised this issue in appeal before the ld CIT(A) due to prolonged litigation and wanted to peac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of Eilly Lilly & Company 312 ITR 225 and penalty should not be levied in routine manner. At the time of imposing penalty, the ld Assessing Officer reproduced the finding given in the quantum addition. There is no fresh application of mind independently. He further relied on the decision in the case of Narangs International Hotels (P) Ltd. Vs. DCIT, Circle-1(2) 137 ITD 53 wherein it has been held that mere confirmations of addition cannot ipso facto lead to inference that there has been conce .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

377; 19,13,007. It is further submitted that the penalty imposed on account of voluntarily surrender at ₹ 20,21,895/- that these credit entries were outstanding as on 01/4/2006, which was not received during the year under consideration. During the year under consideration, the assessee had paid back to M/s JK Marbles Industry ₹ 6,08,000/-, M/s Rajhans Marble House ₹ 3,43,000/- and M/s Venketesh Marble ₹ 1,00,350/- and remaining amount outstanding as on 31/3/2007. These c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the amounts were refunded to the parties in the year under consideration and in subsequent year. During the course of assessment proceedings, notices U/s 133(6) were issued to M/s JK Marbles Industry and M/s Lovely Marbles. The Assessing Officer received the confirmations from them duly confirming the copy of account of the assessee. The ld Assessing Officer has drawn adverse inference on the basis of that payments were made in subsequent year through bearer cheque. M/s Laxmi Flooring had square .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion of penalty. He further relied on the following decisions: (i) Smt. Durga Devi Somani in ITA No. 672/JP/2011. (ii) Sh. Ashish Gupta in ITA No. 671/JP/2011. (iii) Smt. Sumsitra Devi Agarwal ITA No. 687/JP/2011. (iv) Shri JUgal Kishore Sharma ITA No. 686/JP/2011. The Hon'ble Supreme Court in the case of Mak Data Pvt. Ltd. Vs. CIT (2014) 1 SCC 674 does not apply and is distinguishable on the facts and circumstances of the present case. In that case, the assessee did not offer any explanation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

which is squarely applicable on identical facts. He has drawn our attention on page NO. 29 of the finding of the Coordinate Bench in the case of Durga Devi Somani Vs. ITO, Ashish Gupta Vs. ITO, Ashok Kumar Kamdar Vs. ITO, Sumitra Devi Agarwal Vs. ITO and Jugal Kishore Sharma Vs. ITO and prayed to delete the addition. 5. At the outset, the ld DR has vehemently supported the order of the ld CIT(A). 6. We have heard the rival contentions of both the parties and perused the material available on th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

annot be added in the year under consideration U/s 68 of the Act. The Coordinate Bench in the case of Durga Devi Somani Vs. ITO, ITA No. 672/JP/2011 for A.Y. 2007-08 order dated 31/10/2014, in the case of Ashish Gupta Vs. ITO ITA No. 671/JP/2011 A.Y. 2007-08 order dated 17/10/2014, in the case of Ashok Kumar Kamdar Vs. ITO in ITA No. 684/JP/2011 A.Y. 2007-08 order dated 18/11/2011, in the case of Sumitra Devi Agarwal Vs. ITO ITA No. 687/JP/2011 A.Y. 2007-08 order dated 01/10/2015 and in the case .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

12-7-2017 UTGST Rate

12-7-2017 UTGST Rate

12-7-2017 IGST Rate

More Notifications


Latest Circulars:

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

13-7-2017 Central Excise

13-7-2017 Customs

7-7-2017 Income Tax

7-7-2017 Goods and Services Tax

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version