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TaxTMI 
TaxTMI 
TaxTMI 
2016 (6) TMI 799
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....red in confirming the action of the learned Assessing Officer in imposing penalty under section 271(1)(c) of the Income-tax Act, 1961, amounting to Rs. 2,44,937. The action of the learned Commissioner of Income-tax (Appeals) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the penalty of Rs. 2,44,937 imposed under section 271(1)(c). 2. In the facts and in the circumstances of the case and in law the learned Commissioner of Income-tax (Appeals) has erred in confirming the action of the learned Assessing Officer in imposing penalty under section 271(1)(c) of the Income-tax Act, 1961, amounting to Rs. 2,44,937 on a dead person. The action of the learned Commissioner of Income-tax ....
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....e any evidence for claiming this expenditure. Spot inquiry got conducted through the Inspector level that no such work was done by the assessee. The assessee could not even specified in which particular shop or place, the marble was used. The assessee had thus failed to establish the genuineness of the expenditure of Rs. 6,09,534. While computing his total income, the assessee had claimed further expenses of Rs. 61,018 on account of bank commission and other expenses and during the course of assessment proceedings, the assessee himself admitted that these expenses were personal nature and were inadmissible. Therefore, the learned Assessing Officer imposed penalty at Rs. 2,44,937 under section271(1)(c) of the Act, which is 100 per cent. of t....
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....e has not admitted the additional evidence as genuine and valid evidence. Thus, evidences were not made available during the quantum proceedings before the honourable Income- tax Appellate Tribunal. The learned Assessing Officer had proved beyond doubt that the marble was nowhere used in the construction of complex. Therefore, the assessee claimed bogus expenses. The learned Commissioner of Income-tax (Appeals) upheld the penalty under section 271(1)(c) of the Act. He also considered the various case law on disallowance of business expenses. The issue of penalty can be imposed on the expired person, has also considered by the learned Commissioner of Income-tax (Appeals). He held that the assessment proceedings was completed at the time when....
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....e stage of this appeal, they have been produced before the honourable Bench. The learned Commissioner of Income-tax (Appeals)'s observation is also not right that photo copies of the bills are not genuine. If any doubts were in the mind of the learned Commissioner of Income-tax (Appeals) or the learned Assessing Officer they have power to issue summon to the marble supplier. At the time of spot inquiry conducted through the Inspector, the marble was not found fixed in the constructed area, it is claimed that there is possible to alter the marble fixed by the assessee by the buyer as marble was placed in February, 2006, whereas inquiry was made in December, 2008. The penalty imposed under section 271(1)(c) of the Act is not automatic. Th....
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....een taken against the deceased if he had survived may be taken against the legal representative, would mean that for recovery of sum as per sub-section (1) any proceedings, i.e., recovery but not include the imposition of penalty. The learned authorised representative further relied on the decision in the case of Bhuban Mohan Mitter Charitable Trust v. ITO [1993] 45 ITD 617 (Cal) wherein the honourable High Court has held that penalty proceedings are quasi-criminal in nature. In criminal jurisprudence, a crime dies with a man and the legal representative of the deceased offender or criminal legal heirs cannot be penalised for the offences or crimes committed by the deceased. Therefore, penalty proceedings abate on the death of the assessee.....
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....sed on March 1, 2011. It means that after the death of the assessee. The assessee claimed the expenditure of Rs. 6,09,534 in the profit and loss account, which has been disallowed by the Assessing Officer. The same has been confirmed by the Income-tax Appellate Tribunal, vide order dated November 26, 2010. The assessee claimed that this marble was fixed in the construction made in Kamla Modi Market which was purchased on February 3, 2006. Copy of the bill placed before us on page 9 of the paper book, which is copy of the bill of lading for purchase of marble at Rs. 4,11,608 on which registration number of the seller and the name of the transporter has been given. The evidence placed for remaining expenses also perused and we find that the a....