2016 (2) TMI 292

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....uantum of the penalty, these appeals were heard together. 3. Several grounds have been raised in these appeals involving the sole issue regarding validity of imposition of penalty under sec. 271(1)(c) of the Income-tax Act, 1961 on the amount of disallowed on account of expenditure by way of payment made to Globextech India (P) Ltd. 4. We have heard and considered the arguments advanced by the parties in view of orders of the authorities below, material available on record and the decisions relied upon. 5. The relevant facts are that original assessment under sec. 143(3) of the Act was framed. Subsequently, search and seizure operation was carried on S.K. Gupta Group of cases and during the course of search, evidences were availabl....

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....sallowance. The Assessing Officer accordingly completed the assessment under sec. 143(3)/147 of the Income-tax Act, 1961 making both the disallowances on account of expenditure incurred on payment of job work through Globextech India Ltd. The Assessing Officer, however, did not agree with the above explanation of the assessee during the penalty proceedings and levied corresponding penalty for the assessment year under consideration under sec. 271(1)(c) of the Act which has been upheld by the Learned CIT(Appeals). 7. The Learned AR contended that the assessee has suo-moto admitted the said addition on account of non-availability of relevant evidences and without appreciating that the penalty proceedings are separate and independence proce....

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.... of income or furnishing inaccurate particulars thereof on the part of the assessee towards the said disallowances. 10. In rejoinder, the Learned AR submitted that nothing incriminating was found against the assessee during the course of search at the premises of S.K. Gupta Group of Companies. The Learned AR also referred copy of ledger account of Globextech India Ltd. in the books of assessee made available at page Nos. 7 to 9 of the paper book which was furnished by the assessee before the Assessing Officer along with reply dated 21.11.2009 of the assessee with suo-moto offering of amount of expenditure for disallowance in the course of assessment making it clear that since, matter being old, the assessee was not in a position to colle....