2013 (12) TMI 1358

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....and confirming penalty of Rs. 1,23,600 levied by the Assistant Commissioner of Income-tax, Circle-1, Kota." 2. Briefly the facts are that the assessee returned income of Rs. 2,01,733 from trading activities. During the course of assessment proceedings, the Assessing Officer found that the assessee has received two gifts of Rs. 1,00,000 each from Smt. Varsha Agarwal and Smt. Abha Agarwal in the name of his son and daughter respectively. Since there were cash deposits in the donors' account prior to the date of making the gift, the Assessing Officer doubted the creditworthiness thereof and treated the gifts as bogus and unexplained. Accordingly he made addition of Rs. 2,00,000 was to the returned income thereby making the assessment at an ....

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....e return of income filed by the assessee. It could not be a case of furnishing of inaccurate particulars when reference is made to the return of income. It is a different matter that in quantum addition the authorities have taken a different view but penalty proceedings being quite separate and distinct, assessing authority, did not make any enquiry into the genuineness of the claim and proceeded to levy penalty arbitrarily on the findings contained in the assessment proceedings. The Assessing Officer has completely failed to rebut the facts laid before him in penalty proceedings nor did he consider the same afresh in the context of penalty. Even the Appellate Tribunal did not say that amount of gift so received by the assessee is his conce....