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2010 (8) TMI 1059 - ITAT HYDERABAD

2010 (8) TMI 1059 - ITAT HYDERABAD - TMI - ITA No.177-182/Hyd/10, ITA No.567 and 568/Hyd/10 and ITA No.278-283/Hyd/10 - Dated:- 31-8-2010 - G.C. GUPTA, VICE PRESIDENT AND CHANDRA POOJARI, ACCOUNTANT MEMBER. Assessee by : Shri S.Rama Rao Department by : Shri Sunil Babu K.E. ORDER Per Bench: There are fourteen appeals in all in this bunch. They are directed against the orders of the CIT(A) in the context of penalties imposed under S.271(1)(c) of the Income-tax Act, 1961, for the assessment years 1 .....

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2001-02 ITA No.179/Hyd/10 : Asstt. Year - 2002-03 ITA No.180/Hyd/10 : Asstt. Year - 2003-04 ITA No.181/Hyd/10 : Asstt. Year - 2004-05 ITA No.182/Hyd/10 : Asstt. Year - 2005-06 ITA No.567/Hyd/10 : Asstt. Year - 1998-99 ITA No.568/Hyd/10 : Asstt. Year - 1999-2000 2. Identical grounds are raised by the assessee in all these appeals. Ground of appeal No.1 is general and needs no adjudication. Ground of appeal No.2 of the assessee in these appeals reads as follows- "The learned Commissioner of I .....

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.2004. During the course of search proceedings, pay-in-slips relating to Karnataka Bank Limited Nellore, were found in the names of four persons, which could not be identified. He submitted that the additions were made by the Assessing Officer in the assessment of the assessee of the aggregate of all the amounts represented by the pay-in-slips relating to Karnataka Bank Ltd. in the names of the four persons in the hands of the assessee only. The assessee has retracted from his initial statement .....

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osits and the additions made were reduced accordingly. In the penalty appeals, the CIT(A) has upheld the levy of penalty under S.271(1)(c) of the Act on the undisclosed income worked out at 15% of the deposits as per pay-in-slips relating to Karnataka Bank Ltd, and also directed the Assessing Officer to reduce the amounts of penalty to 100% of the tax sought to be evaded after giving effect to the directions of the Tribunal, and accordingly partly allowed the appeals of the assessee. The learned .....

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practice of his own and was only an employee of the company running the hospital. 4. The Learned Departmental Representative has opposed the submissions of the learned counsel for the assessee. He submitted that but for the search operations, the income added in the hands of the assessee would have escaped assessment and therefore the assessee is guilty of concealment of income or furnishing of inaccurate particulars of income. He submitted that the Department has not accepted the Tribunal order .....

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lating thereto. He submitted that the retraction of the assessee from his initial statement came about eight and half months after the initial statement made by the assessee. He referred to the relevant paras of the orders of the Assessing Officer and the CIT(A) in support of his submission that the amounts mentioned in the pay-in-slips relating to Karnataka Bank in fact represents the undisclosed income of the assessee from his medical profession. 5. We have considered the rival submissions car .....

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osits of his unaccounted income. The retraction of the assessee from the original statement came nearly eight-and-half months after the original statement was recorded by the department. The Tribunal in the quantum appeals of the assessee for the relevant assessment years, considered the entire gamut of the case of the assessee and has concluded that the assessee's only source of income is his medical profession, besides agricultural income received from the HUF. The Tribunal concluded that .....

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ns upheld at 15% of the total deposits made in the S.B. Account with Karnataka Bank Ltd., as income of the assessee, but in our considered view that would not be sufficient to hold the additions made in that behalf represent the concealed income of the assessee. We find that the assessee has retracted from his original statement, after a gap of eight and half months after the recording of the original statement by the Department. Assessee admittedly is an employee of the company running the hosp .....

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tum appeals of the assessee could be sustained on the predominance of the probabilities. But for imposing penalty for concealment of income or for filing inaccurate particulars of income under S.271(1)(c), mere probability of the income relating to the assessee is not sufficient and it has to be established that the disputed income belongs to the assessee. In the absence of any such material, we hold that it could not be proved in this case by the Department that the additions partly sustained b .....

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allowed. Revenue's Appeals ITA No.278/Hyd/10 : Asstt. Year - 2000-01 ITA No.279/Hyd/10 : Asstt. Year - 2001-02 ITA No.280/Hyd/10 : Asstt. Year - 2002-03 ITA No.281/Hyd/10 : Asstt. Year - 2003-04 ITA No.282/Hyd/10 : Asstt. Year - 2004-05 ITA No.283/Hyd/10 : Asstt. Year - 2005-06 6. Identical grounds are raised by the Revenue in these appeals. Ground No.1 is general in nature and needs no separate adjudication. Grounds of appeal No.2 and 3 are as under- "2. The CIT(A) erred in giving reli .....

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ame issues filed against the order u/s. 143(3) r.w.s.153A was dismissed by the learned ld. CIT(A) by advancing proper reasoning and by making individual and specific comments on each issue." 7. The Learned Departmental Representative submitted that the order of the Tribunal in assessee's own case in quantum appeals in restricting the addition to 15% of the amount of deposits made in Karnataka Bank Ltd. through pay-in-slips found at the time of search, was not accepted by the department .....

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