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2016 (9) TMI 996 - ITAT KOLKATA

2016 (9) TMI 996 - ITAT KOLKATA - TMI - Unexplained investment u/s 69 - Assessee failed to produce her documentary evidence in support of investment made in RBI bond amounting to ₹ 8 lakh - Held that:- From the submission of Ld. AR we find that assessee has received a sum of ₹ 8.50 lakh in an account maintained jointly with her husband. The bank statement and salary details of assessee’s husband have been duly furnished. In our considered view the source of investment has been duly e .....

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e find that no penalty shall be levied upon assessee if it is proved that there was a reasonable cause for the noncompliance of notice. In the facts of case, as assessee, a female was on the advanced stage of pregnancy and at that time came to Kolkata, in her parental house from Bangalore for the purpose of giving birth to her second issue. Considering the totality of the fact, we find that there was sufficient reasonable cause which prevented assessee to compliance said notice and in this view .....

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& 24.10.2013. Assessment was framed by ITO Ward-31(1), Kolkata u/s 144 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) vide his order dated 28.12.2007 for assessment year 2005-06. Penalty levied by Assessing Officer u/s 271(1)(b) of the Act vide his order dated 24.06.2008 First we take up ITA No. 2654/Kol/2013 (AY 05-06) 2. Solitary ground raised by the assessee per its appeal as under:- 1. For that in the facts and circumstances of the case the assessment order passed was .....

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d Representative appeared on behalf of assessee and Shri P.K.Chakraborty, Ld. Departmental Representative appeared on behalf of Revenue. 3. Only issue raised in this appeal of assessee is that Ld. CIT(A) erred in upholding the action of Assessing Officer by sustaining the addition of ₹ 8 lakh on account of unexplained investment u/s 69 of the Act. 4. The facts in brief are that assessee in the present case is an individual and has declared her income from other source for an amount of S .....

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ssuing several notices but no details was submitted by assessee. Therefore, AO treated the same as unexplained investment u/s 69 of the Act and added to the total income of assessee. 6. Aggrieved, assessee preferred an appeal before Ld. CIT(A), whereas assessee submitted that investment in RBI bond was made out of money received from her husband ( working in USA) through banking channel and in support of her claim she submitted her bank statement of both the accounts but Ld. CIT(A) rejected the .....

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is order of Ld. CIT(A) assessee came in second appeal before us. 7. Before us Ld. AR filed paper book comprising pages from 1 to 27 and stated that assessee has been filing her IT return in Bangalore as it was her jurisdictional Income Tax office for the last three years. This fact was also duly communicated to Department. However, for the year under consideration, the return was filed at Kolkata address but all the relevant documents were at Bangalore address. The assessee being lady was on the .....

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is placed on pages 6 and 7 of the paper book. Ld. AR further submitted that the cheque issued and deposited in the Indian Bank a/c which are placed on pages 8 to 13 of the paper book along with bank statement. Ld. AR in this regard drew our attention on page 16 of the paper book where the copy of RBI bond was placed for ₹ 8 lakh which is in the name of assessee and her husband. The ld. AR prayed that order of Authorities Below may be quashed. On the other hand, Ld. DR vehemently relied on .....

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that assessee has received a sum of ₹ 8.50 lakh in an account maintained jointly with her husband. The bank statement and salary details of assessee s husband have been duly furnished. In our considered view the source of investment has been duly explained by submitting the documents in the form of paper book. Considering the details of the facts of the present case, we find that source of investment has been duly explained by assessee at the appellate stage and in rebuttal Ld. DR also fa .....

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otice issued by AO. 11. At the outset, it was observed that in the present case assessee was residing in Bangalore but came to Kolkata (her parental house) during the period of her pregnancy. As a result, assessee failed to comply the notice issued by AO. The necessary details has already been discussed by us in para-7 & 8 of this order. In view of above, we are inclined to quash the penalty imposed by AO u/s 271(1)(b) of the Act in terms of provision of Sec. 273B, which reads as under:- [27 .....

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bsection (1) [or sub-section (1A) of section 272BB or] [sub-section (11) of section 272BBB or] clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure.] From a plain reading of the above Sec. 273B of the Act, we find that no penalty shall be levied upon assessee if .....

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