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2016 (7) TMI 807

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..... to rebut these factual findings. Under these circumstances, we find the ld.CIT(A) has rightly confirmed the penalty levied by the Assessing Officer. In view of the same, no interference is called for in the order of the ld.CIT(A) and the same is confirmed. - Decided against assessee. - I.T.A. No.ITA No.4021/Mum/2014 - - - Dated:- 10-6-2016 - SHRI AMIT SHUKLA (JUDICIAL MEMBER) AND SHRI ASHWANI TANEJA (ACOUNTANT MEMBER) For The Appellant : None For The Respondent : Shri A Ramachandran ORDER Per ASHWANI TANEJA, AM This appeal has been filed by the assessee against the order of Commissioner of Income-tax (Appeals) [hereinafter called ld.CIT(A) ] dt 07-03- 2014 passed against the penalty order u/s 271(1)(c) dated 30th .....

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..... xmichand Rohira on 08.05.2007, during the course of which, loose papers numbered 14 to 21 (as contained in folder marked Annexure 'A') were found. On an analysis of the loose sheets, the A.O found that the appellant had made cash payments aggregating to ₹ 3,44,02,000/- for acquisition of shops, in the name of the firm, and the same was kept outside the books of account. The A.O held that 36% share is that of the appellant, on the basis of the profit sharing ratio. Accordingly a sum of ₹ 1,23,84,720/- was brought to tax in the hands of the appellant on substantive basis. The A.O has assessed the same on protective basis in the hands of the firm. Penalty proceedings were initiated under s. 271(1)(c) of the Act. The Assessi .....

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..... his employees. 7. The ld.CIT(A) considered the submissions by the assessee but was not convinced with the arguments of the assessee and, therefore, he confirmed the levy of penalty with following observations: 5. I have very carefully considered the facts and the legal position. I have taken into account the findings of the A.a as well as the counter arguments of the appellant. I have also examined the copies of the seized material which is crucial to understand the issue at stake. Four shops were acquired by the firm in Everest Chamber, Andheri East. The appellant has no quarrel about the acquisition cost as reflected in the books at a figure of ₹ 1,90,51,074/-. The said payments to the extent of ₹ 1,90,51,074/- wer .....

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..... figures as noted, especially as noted in page 14, do not in any manner give the appearance of mere projection or estimates. The notings as in page 14 are reproduced hereunder:- Lakhi Received 2,03,50,000 40% share 1,37,60,800 Excess Received 65,89,200 -, Umesh C. Received 48,52,000 Less: Share 24% 82,56,480 Short received 34,04,480 Ganshyam C Recd. 92JOO~000 .....

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..... ot automatically trigger the levy of penalty. Penalty proceedings are separate and distinct from the assessment proceedings. The findings in the assessment are certainly valid though have only probative value. The facts of this case have been independently considered bearing in mind the provisions in respect of levy of penalty under s. 271(1)(c). So also, in penalty proceedings, concealment need not be proved to the hilt. The circumstantial evidences are certainly valid and material especially so when willful concealment is not an essential ingredient for attracting penalty, which is a civil liability. It has been held in CIT vs. Master Sunil R. Kalvo [2007] 292 ITR 0086 (Karnataka) that evidence to establish to the hilt is unnecessary for .....

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