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TMI Blog2018 (3) TMI 1806X X X X Extracts X X X X X X X X Extracts X X X X ..... grievance of the both the appellants relate to the similar set of facts, therefore both the appeals were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. In ITA No. 1078/Ahd/2015, the assessee is aggrieved by the levy of penalty of Rs. 22.15 lacs u/s. 271(1)(c) of the Act and ITA No. 1079/Ahd/2015, the assessee is aggrieved by the levy of penalty of Rs. 9 lacs u/s. 271(1)(c) of the Act. 4. Facts of the case which trigger the levy of penalty relates to the deposit of cash fond in the Axis Bank Ltd, Vastrapur Branch and also in ICICI Bank, Vastrapur Branch in the assessment proceedings, the assessee was asked to explain the source of cash deposit along with suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; 9. Assessee carried the matter before the ld. CIT(A) but without any success. 10. Before us, the ld. counsel for the assessee vehemently stated that though he has lost in the quantum proceedings but the fact of the matter is that the cash found to be deposited in the bank account were related to the sales of suit pieces. It is the say of the ld. counsel that business receipts were deposited in the bank account and at the most only profit margin should have been considered as the income of the assessee. Be that as it may, the ld. counsel stated that the penalty so levied is contrary to the facts of the case. Per contra, the ld. D.R. strongly supported the findings of the A.O. 11. We have given a thoughtful con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; In our considered opinion, the same cannot be the foundation for the levy of penalty u/s. 271(1)(c) of the Act. 13. In our considered opinion, the assessee had given a very logical and reasonable explanation in respect of cash found to be deposited in the bank accounts. It is equally true that the said explanation did not find any favour with the A.O. But the fact remains that a very logical and reasonable explanation was given by the assessee. In our understanding of the facts, we do not find any this to be a fit case for the levy of penalty u/s. 271(1)(c) of the Act. We accordingly set aside the findings of the ld. CIT(A) and direct the A.O. to delete the penalty in both these appeals. Both these appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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