TMI Blog2016 (6) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... tice u/s 143(2) asking for information on the investment made by the assessee. Assessee had filed the relevant information called for. The Assessing Officer had attempted to investigate the genuineness of the document and persons involved in signing the agreement. The documents were found to be genuine and the persons involved are not traceable due to efflux of time i.e. after expiry of 5 years. Since assessee had discharged the initial burden of proof and considering the substantial time lag, we are inclined to adjudicate the issue in assessee’s favour as this case is not a fit case to levy penalty u/s 271(1)(c) of the Act. Accordingly, the penalty is deleted and grounds raised by the revenue are dismissed.- Decided in favour of assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 48,94,600/-. Treating the said addition as concealed income, the AO initiated proceedings u/s 271(1)(c) of the Act. Though the assessee filed a detailed explanation before the AO, rejecting the same, the AO levied penalty of ₹ 14,27,483/- u/s 271(1)(c). 4. Aggrieved, the assessee preferred an appeal before the CIT(A) and filed written submissions before the CIT(A), which were extracted by the CIT(A) at pages 2 3 of his order. After considering the submissions of the assessee, the CIT(A) deleted the penalty levied by the AO by observing as under: 5. In view of the submissions made by the appellant, I perused the record and filed that the deposits were made into the bank account for a short period. The appellant did not m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the CIT(A) ought to have sustain the penalty. 4. Any other ground that may be urged at the time of hearing. 6. Ld. DR submitted that assessee had not proved the information furnished are accurate. Ld. CIT(A) has not appreciated the facts of the case as the assessee could not produce any proper evidence with regard to the source of deposits made. CIT(A) had grossly overlooked the quantum addition was made mainly as the genuineness of the transaction and agreement was found to be doubtful. It looked like the whole documents submitted by the assessee are sham. 7. Ld. AR submitted that the assessee is a small trader and estimated the income u/s 44AF. He submitted and stressed that the deposits made with the bank are for short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission was matching with the deposits duration and subsequent withdrawals. Coming to the investigation of AO, the AO had verified the genuineness of the documents filed with Govt. Examiner of questioned documents , Directorate of Forensic Science , MOHA, Hyderabad. They could not determine the absolute age precisely but did not make any adverse comments on the genuineness of the agreement. The record aspect of the verification was, the AO called for the investigation reports from the respective jurisdiction AO of the buyers and sellers of the assessee who had entered into agreement. The respective AO could not locate the persons. This exercise was done after elapse of 5 years. The remote chances of possibility that such persons must have m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled for. The Assessing Officer had attempted to investigate the genuineness of the document and persons involved in signing the agreement. The documents were found to be genuine and the persons involved are not traceable due to efflux of time i.e. after expiry of 5 years. Since assessee had discharged the initial burden of proof and considering the substantial time lag, we are inclined to adjudicate the issue in assessee s favour as this case is not a fit case to levy penalty u/s 271(1)(c) of the Act. Accordingly, the penalty is deleted and grounds raised by the revenue are dismissed. 10. Since the facts and grounds raised in ITA No. 1047/Hyd/13 are materially identical to that of ITA No. 1046/Hyd/13, following the decision taken therei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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