2015 (4) TMI 546
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.... the I.T. Act?" 3. The facts giving rise to this Appeal are as under :- Order u/s. 143(3) r.w.s. 144 of the I.T. Act dated 13.07.2002 The assessee firm engaged in the business of civil construction filed its income-tax returns for the Assessment Year 2001 - 2001 on 31.10.2001 declaring an income of Rs. 1,98,170/-. The assessment of the Assessing Officer was completed at an income of Rs. 38,05,860/- making an addition of Rs. 36,07,690/- on account of bogus/non-existing liabilities in respect of labour charges as reflected in the balance sheet. According to the trading account, the assessee showed construction income of Rs. 3,88,25,672/- declaring gross profit of Rs. 19,10,123/- @ 4.91 and the net profit of Rs. 4,12,500/- was shown in the....
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....ted 26.08.2003 No appeal was preferred by the assessee against the assessment order. However, the assessee preferred an appeal before CIT(A)-VI, Surat against the Assessing Officer's order levying penalty of Rs. 13,12,666/-. The CIT(A)-VI, Surat confirmed the levy of above penalty u/s. 271(1)(c) and the assessee's appeal was dismissed. Order of the Appellate Tribunal dated 16.12.2006 The assessee filed an Appeal before the Appellate Tribunal, Ahmedabad against the order of CIT(A)-VI, Surat. The Appellate Tribunal allowed the assessee's appeal and deleted the penalty of Rs. 13,12,666/-. 4. In the above background of facts, it is submitted by learned Advocate for the appellant that the assessee was allowed proper opportunity t....
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....purpose. We find merit in the argument of learned counsel that assessment proceedings and penalty proceedings are separate and distinct and merely because additions has been made, same will not lead to automatic levy of penalty. Assessee reiterated its stand in penalty proceedings, AO should have inquired matter independently in penalty proceedings and given a finding about correctness or otherwise of assessee's explanation. AO has imposed penalty solely on the basis of agreed addition by assessee, in the given facts and circumstances, explanation furnished by assessee remains uncontroverted, and therefore, it cannot be held that explanation given by the assessee have been found to be incorrect or false. In view of the above facts, rati....