2014 (6) TMI 770

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....648/- u/s. 271(1)(c) of the Income Tax Act, 1961. 3. We have heard the rival submissions and perused the orders of lower authorities and materials available on record. In the instant case, penalty u/s. 271(1)(c) of Rs 9,03,648/- was levied by the Assessing Officer on the ground of addition of Rs 27,00,000/- made in the assessment u/s. 68 of the Act. The Assessing Officer observed that the assessee has claimed to have received gift of Rs 27,00,000/- from nine persons during the relevant year. According to the Assessing Officer, Mrs. Deeptiben Vora could not appear before him on the ground of bad health and in absence of Mrs. Deeptiben Vora, availing of cash with her on the date on which cash were deposited in her bank account could not be....

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....t of ninth person Mr. Hasitkumar Shah, copy of passport was filed before the Assessing Officer copy of which is also placed at page no. 96 to 98 of the paper book filed before us. Thus, she contended that the Assessing Officer was not correct in alleging that identity of the said two donors was not established. She submitted that the gift amount came from Dubai through proper banking channel and that it was also supported by the declaration of gift executed by Mr. Hasitkumar Shah. She pointed out that no material after making inquiry could be brought on record by the Assessing Officer to show that the gift was bogus and the amounts were in fact actual income of the assessee. The addition was made under a deeming provision of section 68 of t....

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....n penalty proceeding is different from the considerations that apply in an assessment proceeding. 11. The Tribunal in the case of Vasantlal Amrutlal Doriwala (HUF) (supra) has held as under: "4. Having heard the submissions of both the sides, we are of the considered opinion that this is not a case where the assessee has not offered any explanation. Facts of the case have revealed that the declaration of gift was filed by the assessee. Copies of those declarations are furnished before us in a compilation. Further, the assessee has placed 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 hav....