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Jasbir Singh, Prop. M/s Jasbir Singh Gurcharan Singh Versus Commissioner of Income Tax, Patiala and another

2016 (5) TMI 795 - PUNJAB AND HARYANA HIGH COURT

Penalty u/s 271(1)(c) - sundry creditors outstanding - Held that:- The Assessing Officer asked the assessee to furnish confirmations in respect of sundry creditors outstanding in the books of account of the assessee. The case was adjourned to 17.12.2008 and on this date, assessee has not filed the confirmations of the above four creditors and the matter was, therefore, adjourned by the Assessing Officer to 22.12.2008. On 22.12.2008, the counsel or assessee has shown his inability to furnish the .....

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ering the amount in question voluntarily. In the present case, at the assessment stage as well as at the penalty proceedings, the assessee has failed to explain the genuineness of the credits in the matter. Whatever explanation was filed, was not substantiated through any evidence or material on record. Thus, assessee failed to explain the genuine credits/liability in books of account on the matter in issue and has therefore, furnished inaccurate particulars of income so as to invite levy of the .....

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e P.4 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (in short, the Tribunal ) under Section 254(1) of the Act in ITA No.72/Chd/2011, upholding penalty under section 271(1)(c) of the Act, for the assessment year 2006-07, claiming following substantial questions of law:- 1. Whether in view of the facts and circumstances of the case, the Tribunal has erred in law and on facts in upholding the order of the Assessing Officer of imposing the penalty under section 271(1)(c) .....

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ngs arrived at by the Tribunal are perverse, in as much as no reasonable person correctly informed of the provisions of law would come to such a conclusion? 5. Whether the Tribunal has erred in law by wrongly applying the decision of the Hon'ble Supreme Court in the case of Mac Data 358 ITR 593 (SC) which is distinguishable on facts and not universally applicable? 2. A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The appellant-asse .....

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was selected for scrutiny. Notice under sections 142(1) and 143(2) of the Act was issued to the appellant. The appellant supplied all the necessary financial statements and produced books of account before the respondent authorities. During the assessment proceedings, the Assessing Officer asked the appellant to file confirmation qua certain sundry creditors outstanding as on 31.3.2006. The appellant submitted confirmation of five creditors out of nine. The appellant was not in good relations w .....

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ign the confirmations. The Assessing Officer imposed penalty amounting to ₹ 1,42,942/- vide order dated 26.9.2009, Annexure A.2. The appellant challenged the said order before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 19.10.2010, Annexure P.3, the CIT(A) dismissed the appeal and upheld the order passed by the Assessing Officer. Aggrieved by the order, the assessee filed appeal before the Tribunal. The appellant also filed an application dated 14.6.2011 under Rule .....

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o not held to be relevant. Hence the instant appeal by the appellantassessee. 3. We have heard learned counsel for the appellant. 4. Learned counsel for the appellant submitted that the Tribunal erred in not considering the additional evidence produced by the appellant. It was further submitted that even on merits, the findings recorded by the Tribunal are erroneous. 5. On perusal of the order passed by the Tribunal, we find that it has been categorically recorded by the Tribunal that the assess .....

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sment order. After considering the entire material on record and the case law on the point, the Tribunal declined to admit the additional evidence produced by the appellant. Further the amount in question i.e. ₹ 5,24,000/- pertaining to four of the creditors remained unexplained, false and bogus in the books of account of the assessee. The addition was made when the assessee was cornered by the Assessing Officer to explain the genuineness of the credit that he had surrendered the amount of .....

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le 29 of the ITAT Rules for admission of the additional evidences. The same are order of the Hon'ble Punjab and Haryana High Court suspending the sentence of the assessee in case of Harkewal Singh dated 21.2.2011, Compromise deed with the same person dated 5.9.21007, order dated 2.3.2010 of Additional Sessions Judge in the case of assessee and Babu Ram Gopal, copy of appeal in this case dated 22.8.2008, complaint filed by Shri Bihari Lal under section 138 of NI Act dated 18.10.2005 and copy .....

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he parties, if it is of the opinion that doing so would be necessary for proper adjudication of the matter and that such party was prevented by sufficient cause from leading such an evidence before the lower authorities . The learned DR, however, strongly objected to the admission of the additional evidence and submitted that no reasons have been explained why same were not filed before the authorities below and that for proving genuine credits, it is well settled law that assessee shall have to .....

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22.12.2008. Some of the documents sought to be admitted are prior to passing of the assessment order as noted above. No reasons have been explained why the same were not filed before the authorities below. The learned counsel for the assessee merely explained that during some period assessee was in jail. Therefore, documents could not be filed, however, no specific averments have been proved having any connection with custody of the assessee in jail and for not filing the documents before the a .....

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ny confirmation or evidence before the Assessing Officer to prove all the three conditions and has virtually vide letter dated 22.12.2008 (PB- 23) agreed to surrender the amount of ₹ 5,24,000/- for the purpose of taxation and to pay the tax. This letter is signed by assessee. The theory of assessee in jail at assessment stage is false.Thus, the crux of the matter would be that the amount in question i.e.Rs. 5,24,000/- pertaining to four of the creditors remained unexplained, false and bogu .....

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ears of passing of the assessment order. The Hon'ble Punjab and Haryana High Court in the case of Jawahar Lal Jain, HUF vs. CIT 370 ITR 712 held that No satisfactory explanation had been furnished to demonstrate why the material sought to be produced now could not be produced earlier. Therefore, Tribunal was justified in rejecting the application for admission of additional evidence filed by the assessee. 9 to 12. xxxxxxxxx 13. We had considered rival submissions. The Assessing Officer asked .....

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