2014 (6) TMI 527

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.... Mukul Kr. Shrawat, Judicial Member : This is an appeal filed by the assessee arising from the order of learned CIT(A)-I, Surat, dated 30.10.2012. The assessee has raised the following grounds: "On the fact and in circumstances of the case as well as law on the subject, the learned CIT (Appeals) has erred in confirming the action of the Assessing Officer in levying penalty of Rs.3,60,110/- u/s 2....

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.... of Rs.5,00,000/- was made out of his S.B. A/c. No. 10062 with the Sutex Co-operative Bank Limited. The AO has raised certain doubts about the donors and their bank accounts. However, the assessee has stressed upon the correctness of the gift by filing the Income Tax Returns of those donors along with enclosure in support of the claim. The AO was not convinced and noted that the pay orders were no....

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....heard both the sides. From the sides of the Revenue, learned DR has placed reliance upon the orders of the authorities below. He has pleaded that AO had made certain inquires and thereupon came to know that there was certain irregularities in the preparation of the drafts in favour of the assessee. The donors were not present but only their returns were furnished. He has, therefore, pleaded that i....

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....on record the copy of the bank account wherein the gifted amount was credited. The assessee has also furnished the photocopies of the return filed by those donors. With this factual background, we have carefully perused the decision of National Textiles (Guj) (supra), wherein the Court has observed that "in order to justify the levy of penalty, two factors must co-exist, (i) there must be some mat....