TaxTMI 
TaxTMI 
2015 (9) TMI 5
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....xparte qua the assessee on the basis of material available on record and the written submissions made by the assessee. 3. The facts as culled out from the material on record are as under: 4. Assessee is an individual stated to be running tuition classes styled as "Sunshine Classes" and also as stock broker under the name "Sun Shine Investment". Assessee filed his return of income for A.Y. 2007-08 on 29-08-2008 declaring total income at Rs. 1,88,783/-. The case was selected for scrutiny and thereafter the assessment was framed u/s. 143(3) vide order 16-12-2009 and the total income was determined at Rs. 3,04,800/-. Aggrieved by the order of AO, Assessee carried the matter before CIT(A) who vide order dated 02-05-2011 dismissed the appeal of....
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....d the action of AO of levying penalty by holding as under:- "4.1 I have duly considered the submission of the appellant and find that the Assessing Officer has discussed that the appellant filed an affidavit from Shrl Chunawala. A copy of which has been filed during the course of appellate proceedings also, wherein Shri Chunawala has stated that he is carrying on the business of carting of building materials on meager scale and not filing return of income, since his income is below taxable income, and also has no bank a/c. In the said affidavit, Shri Chunawala has also stated that the appellant is husband of his daughter and that the statement given by him in the affidavit is true and correct and he is in the knowledge that filing of wrong....
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....ess and has also not satisfied the third condition that all the facts relating to the same and material facts to the computation of total income have been disclosed by him, I, therefore, hold that the Explanation 1 to section 271(1)(c) of the Act, is applicable in the case of the appellant, and confirm the penalty levied in his case." 6. Aggrieved by aforesaid order of Ld. CIT(A), Assessee is now in appeal before us. 7. Before us Ld. DR supported the order of AO and CIT(A). In the written submissions, the assessee has submitted that the gift was received in cash from his father-in-law who was aged about 61 years. It was further submitted that during the course of assessment proceedings, proof of identity of the donor in the form of drivin....
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....t he does not have a bank account and his income is below taxable limit. On perusing the affidavit of the donor dated 11/12/2009, it is seen that the relationship of the assessee and the donor is not in doubt, his age being 61 years is also not in dispute. In the affidavit, the donor has stated that he has made gift out of past saving of carting business. Before us, Revenue has not brought any material on record to demonstrate that the donor could not have earned and saved the amount which he has gifted to his son in law. Further it is a well settled law that penalty proceedings are entirely distinct from assessment proceedings and however relevant and good, the findings in assessment proceedings may not be conclusive so far as penalty proc....