TMI Blog2017 (7) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... has proved the identity, genuineness and creditworthiness by filing various documents by the customers as mentioned here in above. Even if the creditors do not appear in response to the notice u/s 131, it is not the duty to enforce the said parties by the assessee and make them present before the Assessing Officer. Assessing Officer will have to arrive at a prima facie satisfaction during the course of proceedings with regard to the assessee having concealed particulars of income or furnished inaccurate particulars, before he initiates penalty proceedings. See case of Madhushree Gupta [ 2009 (7) TMI 38 - DELHI HIGH COURT ]. Thus the penalty so levied u/s 271(1)(c) of the Act is directed to be deleted. - Decided in favour of assessee. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iculars of income or furnished inaccurate particulars and therefore the Assessing Officer was not having jurisdiction to impose penalty as held by Honorable Delhi High Court in the case of Madhushree Gupta 317 ITR 107.in spite of the fact that the same was levied without recording satisfaction as to initiation of penalty in the Assessment Order. 3. That the Learned CIT(A) erred in upholdingthe Order of the learned Assessing Officer, levying penalty u/s 271(1)(c) as the learned Assessing Officer did not appreciate that it is not a case of Loan but it is a case of Advances received from various parties during the course of carrying of the business against booking of plots and consequently therefore, the onus is discharged on filing of conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rival contentions and perused the facts of the case. The facts in the present case as stated above are that the assessee received advances from customers against picking of plots in the upcoming project in Uttar Pradesh. The Assessing Officer was not satisfied with the explanation of the assessee. There is nothing brought on record, that the assessee has received the cash loans and not the advances from customers. The assessee has submitted necessary confirmations with PAN, bank statement of customers the advances were received from the following parties:- S. No. Name of the entity PAN Address of the entity Amount 1 M/s Huba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... identity, genuineness and creditworthiness by filing various documents by the customers as mentioned here in above. Even if the creditors do not appear in response to the notice u/s 131, it is not the duty to enforce the said parties by the assessee and make them present before the Assessing Officer. The reliance is placed on the decision of Hon ble Supreme Court in the case of CIT vs. Orissa Corporation Ltd. 159 ITR 78 where the necessary observations in para 13 and 15 are as under:- The assessee had given the names and addresses of the alleged creditors. It was in the knowledge of the Revenue that the said creditors were income-tax assessees. Their index number was in the file of the Revenue. The Revenue, apart from issuing notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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