2014 (7) TMI 1039

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....rading of Polyester Yarn. Assessee filed his return of income for A.Y. 03-04 on 20.10.2003 declaring total income at Rs. 3,75,861/-. The case was selected for scrutiny and thereafter the assessment was framed 143(3) vide order dated 02.03.2006 and the total income was determined at Rs. 17,32,160/-. While completing the assessment, apart from other additions, addition were also made on account of unexplained cash credit (7,25,000/-) and interest expenses in respect of unexplained cash credit (Rs. 1,32,543). On the aforesaid additions, A.O vide penalty order dated 26.07.2010 levied penalty of Rs. 2,42,825/- u/s. 271(1)(c) of the Act. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) confirmed the penalty by hold....

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....y are not convinced at all with the affairs managed by appellant. In my opinion also, the appellant has willfully concealed the real facts and tried to explain the cash credits by furnishing inaccurate particulars of income. The decisions of different courts relied upon by appellant are distinguishable on facts therefore not applicable in his case. In view of this discussion, I hold that the AO has rightly levied the penalty of Rs. 2,42,825/- u/s. 271(l)(c) of the Act. Which requires to be confirmed. 4. Aggrieved by the order of CIT(A), Assessee is now in appeal before us. 5. Before us, ld. A.R. submitted that ld. A.O made addition u/s. 68 alleging unexplained cash credit of Rs. 7,25,000/- and the interest thereon of Rs. 1,32,543/- wa....

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....Co-op. Bank Ltd. (2005) 278 ITR 170 (Guj). He therefore submitted that the penalty levied by the A.O be deleted. The ld. D.R. on the other hand relied on the order of A.O and CIT(A). 6. We have heard the rival submissions and perused the material on record. In the present case, A.O has levied penalty u/s. 271(1)(c) on the addition made u/s. 68 and on the disallowance of interest expenses of unexplained cash credit. 7. The penalty under section. 271(l)(c) of the Act is leviable if the AO is satisfied in the course of any proceedings under the Act that any person has concealed the particulars of his income or furnished inaccurate particulars of such income. It is well settled that assessment proceedings and penalty proceedings are separ....