2016 (9) TMI 117

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....the tribunal was justified in sustaining the penalty of Rs. 20000/- u/s.271 (D) of the Income Tax Act 1961 ?" 2. The brief facts noticed are that during the course of search and seizure operation u/s.132 on the basis of certain loose papers, it transpired that there was a narration of an amount of Rs. 20000/- having been received from Smt. Rukmani Devi, wife of the assessee by cash and since the said amount was received in cash, it was held to be not only in violation of provision of section 269-SS but also in the assessment order, it was mentioned that the said amount of Rs. 20000/- is treated as un-explained deposit and the AO made a separate addition of Rs. 20000/- by invoking provisions of section 68. The said addition u/s.68 was con....

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....d the penalty. 6. Learned Counsel for the appellant vehemently contended that there was no loan or deposit from Smt. Rukmani Devi and on the basis of some notings in some incriminating document, the addition was made in the regular assessment proceedings but it does not mean that the said amount was received from Smt. Rukmani Devi as loan or a deposit. Alternatively he contended that there is a reasonable cause as the transaction is in between husband and wife and there can always be inter se transaction between husband and wife on account of a bonafide belief that either spouse can deposit certain amount taking into consideration the close relationship. He further contended that once it has been held to be deemed income of the assessee ....

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....y invoking provisions of section 68. It would be appropriate to quote section 68 :- "Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the [Assessing] Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year : [Provided that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such ....