TaxTMI 
TaxTMI 
2013 (10) TMI 869
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....n law, the learned CIT(A)-II, Surat has erred in deleting the AO to restrict the levy of penalty to Rs.21,43,600/- as against Rs.42,60,153/- made by A.O. On the facts and in the circumstances of the case, the learned CIT(A) ought to have upheld that order of the Assessing Officer. It is, therefore, prayed that the order of the CIT(A) may be set aside and that of Assessing Officer may be restored to the above extent." 2. The Assessee in the Cross Objection has raised following grounds, reproduced as under: "On the facts and in the circumstances of the case as well as law on the subject, the learned commissioner of the Income Tax(Appeals) has grievously erred in confirming the levy of penalty u/s.271(1)(c) of the Income Tax Act, 1961....
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.... 'assessment' and 'penalty' proceedings, the assessee had, on being specifically requested for, neither attended nor had furnished any positive or constructive evidences to prove the- 1. Identities and creditworthiness of the creditors as well as genuineness of loan transaction. 2. Any present postal addresses, proof any I.T. returns/ bank statement of any of the outstanding creditors. (c) In absence of confirmatory letters or present postal addresses of the so called creditors or outstanding sundry creditors, no independent enquiries could be made to verify the credit worthiness of the creditors and genuineness of the so called loan transactions/ transactions of outstanding sundry creditors. (d) The assessee had neither attende....
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....ssee's own case for the assessment year 2005-06, wherein with respect to the partner's capital amounting to Rs.32,37,280/-, the ITAT has deleted the addition at pages 4 to 9 of its order in paragraph 4 to 7. Learned counsel has further invited our attention at page 15 with regard to cash credit of Rs.15,05,000/- where the Revenue's Appeal has been dismissed by the ITAT. The addition of Rs.1,50,000/- in case of Mr. Mathew has been confirmed at page 15 paragraph 14.5 of the order of the ITAT and with regard to the addition of Rs.50,000/- in the case of M/s. Parth Computerized Weigh Bridge, the matter was set aside to the file of the AO for fresh adjudication and Rs.1 lac in the case of Mr. S.K. Gupta was also set aside to the file of the AO f....
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.... contentions and perused the facts of the case. As regards, the partner's capital and cash credits of Rs.32,37,280/- and Rs.18,05,000/-, the learned CIT(A) in quantum has allowed the relief to the assessee and the ITAT 'D' Bench Ahmedabad in ITA No.502/Ahd/2009 and 566/Ahd/2009 (supra) dismissed the appeal of the Revenue with regard to these two conditions. Therefore, when the basis of the addition does not exist, then no penalty can subsist. As regards, the matters has been set aside to the file of the AO with regard to the M/s. Parth Computerized Weigh Bridge amounting to Rs.50,000/-, with regard to Mr. S.K. Gupta amounting to Rs.1 lac, advances from customer Rs.4,66,093/- and non verifiable credit balance to Rs. 50,91,930/-, the matter h....