TaxTMI 
TaxTMI 
2014 (3) TMI 505
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....otice u/s 153A was issued to the assessee on 12.09.2008. The assessee disclosed by filing Return of Income [ROI] on11.02.2009 income of Rs. 2,90,93,278/- in response to this notice. Assessment was completed u/s 153A/144 of the Act on 29.12.2009 at a total income of Rs. 7,05,51,910/-. Consequently, penalty proceedings u/s 271AAA of the Income-tax Act, 1961 [hereinafter referred to as 'the Act', for short] was initiated and a penalty of Rs. 13,72,200/- was imposed vide order dated 29.11.2012. Aggrieved, the assessee filed appeal and the ld. CIT(A) has restricted to a penalty with respect to undisclosed income of Rs. 44,28,239/-. The assessee is further aggrieved and filed this second appeal by raising the following grounds: "1. On th....
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....r the trade name of M/s Vinod and Company. As discussed above, assessment was completed u/s 153A r.w.s 144 of the Act at Rs. 7,05,51,910/- against returned income of Rs. 2,19,93,278/- on 29.12.2009. The assessee preferred appeal against this addition before the ld. CIT(A) who has sustained this addition and so also the Tribunal has sustained the addition to the extent of Rs. 19,81,311/- on account of dummy client trading indulged by the assessee and has deleted the addition made on account of unexamined and undeclared cash of Rs. 14,94,697. The A.O. has restricted himself and has imposed penalty u/s 271AAA on the income surrendered Rs. 1,55,94,639/-. The A.O. has estimated the concealed income on account of failure to furnish confirmation o....
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.... reported in 299 ITR 19. The decisions on which the ld. D.R. has relied and on which the ld. A.R. has also placed reliance are rendered on different facts. None of these decisions is relating to search proceedings and sub-section (2) of section 271AAA or Explanation (5) appended to section 271(1)(c) of the Act. In our opinion, mere failure of assessee to furnish accounts of the clients in which modification was done due to necessity of business and as per norms of exchange of the institution, an act of concealment of income or furnishing of inaccurate particulars of income, particularly, when complete identity of the clients were given with whom business of brokerage was carried on. Thus, inability to file confirmations was because it was n....
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....d in facts, perverse and contrary to the material on record. 2] That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in upholding the imposition of penalty and further enhancing the same, particularly when the validity of assessment order itself was challenged in the penalty proceeding as well as before the Ld. CIT(A). 3] Without prejudice to above and in the alternative: a) That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in sustaining the penalty on the addition of Rs. 29,68,808/- confirmed by the Hon'ble ITAT by invoking the Explanation 5A to section 271, without appreciating that the Explanation 5A to section 271 is attracted only with reference to income / asset declared by the....
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....itioner may kindly be permitted to raise any additional or alternative ground at or before the time of hearing." A.Y 2007-08 "1] That on the facts and in the circumstances of the case, the order passed by Ld. CIT(A) confirming the penalty imposed by the AO and further enhancing the same is bad in law, bad in facts, perverse and contrary to the material on record. 2] That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in upholding the imposition of penalty and further enhancing the same, particularly when the validity of assessment order itself was challenged in the penalty proceeding as well as before the Ld. CIT(A). 3] Without prejudice to above and in the alternative: a) That on the facts and in the circumsta....
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....ime of hearing." 6. As we have already narrated the relevant and material facts of these cases while narrating for A.Y. 2008-09, the arguments raised by the parties for and against their cases are almost same and similar. After surrender was made on the basis of assets as income earned while making statement u/s 132(4) of the Act, the assessee filed return of income on the basis thereof in view of Explanation 5A and of section u/s 271(1)(c) and sub-section (2) of section 271AAA of the Act which is as under: a. Construction of house Rs. 4000000 b. Investment in clients code for which no confirmation was filed Rs. 1150593 c. Unexplained cash Rs. 4555303 d. Gold ornaments Rs. 1888743 7. The break-up of income of Rs. 44,28,239/- on which ....