1993 (12) TMI 107

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....9th Jan., 1993 by order passed in M.A. No. 20/Jp/1992. 2. Heard the parties. 3. In the course of assessment proceedings the Assessing Officer noticed cash credits in the names of five persons in the books of the assessee. He accepted the genuineness of two and made addition on account of the remaining three. In appeal the CIT(A) confirmed addition in respect of Shri Om Prakash Basar (Rs. 15,....

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....ssee that the depositors, as named above, had confirmed the cash credits in their affidavits and statements and though that evidence was considered insufficient and not satisfactory in the assessment proceedings and addition was made to the total income of the assessee yet the probability of that being plausible should not be rejected out-right in these penalty proceedings which are quasi criminal....

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....oceedings for all purposes are independant of and separate from assessment proceedings. 6. The assessee-firm appears to have come into existence some times in 1976-77 with two partners Sri Kesho Ram s/o Asha Ram and Sri Nemi Chand s/o Bhanwar Lal both contributing Rs. 27,000 each from their agricultural income. Loan was raised from 5 or 6 parties including the two now being considered by us. Lo....

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....relatives of the depositors and the firm had commenced its business in that very year. There is no evidence that the assessee-firm was in a position to have earned unaccounted money and invested the same in the names of the two depositors. There may be such a possibility but such possibility should not, we think, be considered sufficient for imposing penalty under s. 271(1)(c). The circumstances u....