2016 (4) TMI 573

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....e on 03.11.2003 admitting taxable income of Rs. 1,29,12,461. The assessment under section 143(3) was completed on 27.12.2005 determining the total income of Rs. 1,43,68,620. Subsequently, the A.O. received information from DDIT (Inv.) Unit-1(3), Mumbai that there was a search operation under section 132 of the I.T. Act on 12.08.2004 in the case of one Mr. Chetan Shah who is an entry operator and during the course of search it came to light that the said Mr. Chetan Shah floated many proprietary concerns which issued bogus bills to various parties. It was further informed that the assessee had issued DDs in favour of M/s. Amit Enterprises, one of the proprietary concern of Mr. Chetan P. Shah on Indian Overseas Bank for a total sum of Rs. 17,6....

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.... not convinced with the assessee's contention and has levied the minimum penalty of Rs. 6,48,190, against which, the assessee preferred appeal before the Ld. CIT(A) who confirmed the order of the A.O. and the assessee is in second appeal before us. 3. The Ld. Counsel for the assessee, Mr. A.V. Raghuram, while reiterating the submissions made by the assessee before the authorities below, submitted that the assessee had filed its above explanation before the A.O. both during the assessment proceedings as well as the penalty proceedings and the assessee's contention has not been found to be not bonafide. He has submitted that the relevant assessment year is 2003-04 whereas the reassessment proceedings and also the penalty proceeding....