2012 (11) TMI 226

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....08/-. 3. In this case proceedings under section 148 were initiated on the basis of an information received from Investigation Wing which revealed that the assessee had taken bogus accommodation entries totaling Rs. 15 lacs from three different parties in lieu of unaccounted money. Accordingly, assessment was framed by the Assessing Officer u/s. 147/143(3) of the Act, making an addition of Rs. 15 lacs to the income of the appellant as income from undisclosed sources. The gifts taken by the assessee from three persons of Rs. 5 lacs each were treated as bogus gifts. The assessee could not produce any documentary evidence with regard to his relationship with the persons from whom gifts had been received, nor could he explain the purpose of s....

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.... gifts as income, assessee surrendered the amount with a condition that, no penalty will be imposed. Ld. Commissioner of Income Tax (A) further noted that assessee was asked to produce these persons for personal verification, thus, when the assessee was totally cornered and he thought it better to surrender the amounts. Accordingly, Ld. Commissioner of Income Tax (A) sustained the penalty imposed in this regard. 5. Against the above order the Assessee is in appeal before us. 6. Ld. Counsel of the assessee submitted that in this case assessee has duly submitted the documents from the donors like memorandum of gifts, affidavits, PAN card, ration card, copy of ITR and wealth tax return, copy of income tax and wealth tax assessment orders....

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....rs, copy of bank accounts. These gifts were declared in the statement of affairs filed alongwith the return of income filed for that year and were duly reflected in the savings bank account of the assessee. Assessing Officer has not accepted the above explanation on the ground that assessee could not produce any documentary evidence with regard to his relationship with the persons from whom the gifts have been received, nor could explain the purpose of such gifts. When the matter was before the Ld. Commissioner of Income Tax (A), assessee has surrendered the above amounts on the condition that no penalty should be imposed. Upon careful consideration, we find that assessee has submitted various documents in support of the gifts. It is not th....