2024 (3) TMI 1070

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..... proceedings varies from that in an assessment proceedings. Mere disallowance of expenditure or enhancement of returned income does not ipso facto call for imposition of penalty u/s 271(1)(c) - On facts, we note that the assessee has taken consistent stand towards source of cash deposits from his uncle and mother. The bank statement vouches for withdrawal of cash in the hands of relatives. Assesse .....

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..... also note that the assessee being deceased, it may not be possible on behalf of the assessee to prove the circumstantial facts to the hilt in this independent proceeding. Thus, a soft instance deserves in the present case. Appeal of the assessee is allowed. - Shri Challa Nagendra Prasad, Judicial Member And Shri Pradip Kumar Kedia, Accountant Member For the Appellant : Shri Deepak Kataria, CA Fo .....

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..... assessee towards source of cash deposit and declined to interfere with the order of the CIT(A). The ld. counsel further submits that the penalty proceedings under Section 271(1)(c) are all together on different footings and is quite distinct in its nature. 3.1 As regards source of cash deposits, the ld. counsel submits that the deceased-assessee had received such amount from its relatives. The as .....

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..... deposit is broadly explainable when seen in the context of penal liability under Section 271(1)(c) of the Act. 4. It is trite that burden of proof in the penalty proceedings varies from that in an assessment proceedings. Mere disallowance of expenditure or enhancement of returned income does not ipso facto call for imposition of penalty under Section 271(1)(c) of the Act. On facts, we note that th .....

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..... lty is not justified. It is trite that imposition of penalty under Section 271(1)(c) is not automatic and should not be imposed merely because it is lawful to do so. Some degree of plausibility can be assigned to the plea raised on behalf of the assessee. We also note that the assessee being deceased, it may not be possible on behalf of the assessee to prove the circumstantial facts to the hilt in .....

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