2016 (5) TMI 36

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....earch and seizure operation u/s. 132 of the Act was conducted on 29-01-2009. Assessee filed return declaring total income of Rs. 25,06,470/-. This case was taken up for scrutiny and Assessing Officer (AO) has made an addition of Rs. 34,25,000/- out of the share application money introduced in the company in the name of thirteen individuals. Assessee preferred an appeal before the Ld. CIT(A) vide his order dt. 22-06-2009 who observed that, out of the total investment of Rs. 34,25,000/-, nine investors made an investment of Rs. 30,25,000/- and these people being Income tax assessees themselves can be accepted as genuine. The balance of Rs. 4 Lakhs introduced in the name of minor children of Directors were however, confirmed by the Ld. CIT(A).....

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.... could not satisfactorily explain the sources. Hence, it is clear that the appellant could not satisfactorily explain the above sources neither before the AO nor before the CIT(A), and further the appellant has not disputed the same before the Hon'ble ITAT also. As per the penalty order dated 30/10/2014, the AO clearly narrated the reasons for imposing the penalty at para nos. 5, 6 & 7 and is satisfied to impose penalty. I have carefully gone through the same and I am completely in agreement with the findings of the AO. Hence, the penalty levied is confirmed". 3. Ld. Counsel submitted that there is no incriminating material in the course of search and AO only enquired the share application money transferred through banking channels and....

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....imited company was from the Directors or from their minor children. The proceedings were also consequent to search operations conducted in that group. Still AO records that assessee has not proved the genuineness of creditors, identity and creditworthiness while making the addition. Ld. CIT(A) gave relief to the extent of the investments made by the Director as they are Income tax assessees', who also confirmed the investment made in the name of minor children. As pointed out by the Ld. Counsel, assessee did not prefer an appeal due to smallness of the tax involved. That does not mean that there is concealment of income, more so, by way of furnishing of inaccurate particulars so as to attract penalty u/s. 271(1)(c) of the Act. Mere disallow....