2014 (8) TMI 729

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.... i) Whether, on the facts and circumstances of the case, the Tribunal was justified in confirming the penalty so levied by the AO u/s 271(1)(c) of the Income Tax Act, 1961 on account of gifts by family friends duly confirmed by affidavits/gift deeds and Bank transfers and thereby proving the identity through family function photographs, credit worthiness and genuineness of the transaction simply on presumptions? ii) Whether the order of the Tribunal is perverse and against the provisions of law? 2. Put shortly, the facts necessary for adjudication of the present appeal as narrated therein may be noticed. The assessee is engaged in the business as partner of M/s Nikka Mal Babbu Ram & Sons, Chandigarh. The search and seizure operation was c....

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....e CIT(A) who vide order dated 1.11.2012 (Annexure A-3) confirmed the penalty order and dismissed the appeal. Feeling aggrieved by the order dated 1.11.2012 (Annexure A-3) passed by the CIT(A), the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 26.8.2013 (Annexure A-4) dismissed the appeal. Hence, the present appeal. 3. Learned counsel for the appellant submitted that the amount of gift received was shown in the books of account and, therefore, there was no concealment. It was also argued that the assessee had received the amount through banking channel and the affidavit of the donor had also been produced. It was urged that in such circumstances, the levy of penalty merely on the basis of addition made which ha....

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....ee. First gift is shown to have received on 29.10.2002. On that date balance in the Saving Bank account was Rs. 42,17,965/- and in fact statement has been filed from period 10.8.2002 before us throughout August to October, 2002 there has been a balance ranging from Rs. 40 lakhs to Rs. 58.95 lakhs. The second gift was received on 16.1.2003 and before receipt of gift, bank balance in same account is Rs. 12,33,939/-. In our opinion huge bank balance in the Saving Bank Account in the Financial Year 2002- 03 clearly show that the assessee was not in any financial difficulty and therefore, it is clear that these are bogus gifts. Therefore, the explanation given by the assessee is totally false and accordingly explanation (1) to Section 271(1)(c) ....