TMI Blog2012 (11) TMI 1316X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter the assessment was framed u/s. 143(3) vide order dated 20-12- 2007 and the total income was determined at ₹ 16,33,000/- after making additions on account of unexplained introduction of capital and on account of unexplained cash credits. Against the addition of ₹ 7,15,000/- on account of unexplained introduction of capital, assessee carried the matter before CIT (A). Assessee did not contest the addition of ₹ 9,18,000/- made on account of unexplained cash credits. CIT (A) vide his order dated 19-9-2008 allowed the appeal of the assessee. It is on the addition of ₹ 9,18,000/- which assessee did not contest in appeal. A.O. levied penalty of ₹ 2,75,400/- u/s. 271(1)(c ) and the same was upheld by CIT (A) v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. 4. On the other hand the Ld. D.R. submitted that the assessee did not furnish any evidence called for by the A.O. either before the A.O. or before CIT (A) and accordingly the assessee has not discharged the onus cast upon him. He relied on the decision of the Hon ble Apex Court in the case of CIT vs. Mohankala (2007) 291 ITR 178 (SC). He therefore urged that the A.O. has rightly levied the penalty and for the detailed reasoning of CIT (A), the penalty order be upheld. 5. We have heard the rival submissions and perused the material on record. The undisputed fact of the case is that the assessee is engaged in the business of construction and during the year it was constructing 51 row houses for which it had accepted the booking adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere will be a deemed concealment by the assessee. In the instant case, in response to the notice issued by the ITO for addition of ₹ 2,01,000/-, the assessee replied that he borrowed the same from different creditors who are all agriculturists. When the assessee was asked to substantiate this claim, the assessee made attempts to secure those creditors to be examined before the ITO. Despite the best efforts of the assessee, he could not secure the creditors as witnesses to substantiate his claim before the ITO. Having no other alternative, the assessee voluntarily agreed for addition of ₹ 2,01,000/- to his income as cash credit. Accordingly, the ITO computed the total income of the assessee at ₹ 2,99,500/- vide order of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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