TaxTMI 
TaxTMI 
2012 (4) TMI 686
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....ty of Rs. 39,768/- levied u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act']. 2 The brief facts of the case as per penalty order are as under:- "The assessee has filed his return of income for the A.Y.2000-01 on 30-03-2001 by showing total income of Rs.l,46,860/-. The same was processed u/s.143(1) of the I.T. Act. As there was escapement of income reasons thereof were recorded and statutory notice u/s.148 of the I.T. Act was issued on 07-01-2005 ad served upon the assessee on 7-l-2005.The assessee filed letter dated 31-1-2005 stating to consider the return filed on 30-03-2001 as filed in response to the notice U/s.148 of the Act. The assessee is deriving income from planning drawing income a....
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....sp; 28-09-1999 25000 Dharamshibhai Mavjibhai 29-10-1999 25000 Diwaliben Dharamshibhai 01-11-1999 25000 Total 1,55,000 The A.O. had issued Notice u/s. 142 of the I T Act on 1-12-2005 served on 3-12-2005 to explain the above gifts, which is reproduced as under: "It is brought to your m notice that the person from whom the gifts claimed to have received includes three donors, namely Shri Dharamshibhai, Smt Devaliben and Shri Purshott....
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....ted 9-12-2005 received on 14-12-2005 as under: "We are in receipt of your notice for explaining why the addition may not be made in the year under consideration also considering the gift as not genuine. The *a' would like to submit as under. 1 Dharmsibhai Lakhani: Sir, Dharamsibhai Lakhani is the father of assessee and has expired at the rips age and it is not possible to produce them. He has gifted away such a small amount to his son in contemplation of death and the gift to relative is now a days fully allowable as envisaged by Finance Act,2004. So kindly take a broad view of the matter and allow the same as justified and explained. 2 Diwaliben Lakhani: Sir, the assessee is enclosing the gi....
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.... accept the gift on the principle of Res Judicata as fully explained. 4 Mohan K.Gopani: The above said donor has expired at the very ripe age and being agriculturist he has donated out of his own sources. He being expired, cannot be produced at the appointed day and date. Kindly accept the gift as he was the relative and gifted the amount in contemplation of death. Death certificate attached." 4 The above submission of the assessee has been considered by the Assessing Officer carefully. The assessee repeated his arguments, which were forwarded at scrutiny proceedings of the assessee for A.Y. 2002-03. The genuineness of the above donors have already been examined at the time of assessment proceedings of A Y 2002-03 and a....
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.... u/s.274 r.w.s. 271(1)(c) of the Act dated 22-12-2005 was Issued and served upon the assessee. However, the assessee did not comply with this show cause notice. Therefore, another opportunity was given vide this office letter No. Ward- 9(2)/Pen./2007-08 dated 28-02-2008 which was served upon the assessee on 29-02-08 fixing the date of hring on 10-03-2008.The assessee neither attended on 10-03-08 nor any explanation filed. It is presumed that the assessee is nothing to say in the matter. 7 In the light of the above facts and on going discussion, it is crystal clear that the assessee had filed inaccurate particulars of his income to the extent of Rs. 1,55,000/-and rendered himself liable for penalty u/s.271(1)(c) read with explanation 1 of....
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....akhani [Group Case] referred to supra. We find that the issue is covered by the said decision of the ITAT, wherein the Tribunal has held as under:- "7 We have heard the learned DR and have perused the orders of the AO and the CIT(A). We find that the assessee has claimed to have received five gifts totaling to Rs. 3,03,651/-. The assessee has disclosed all the material facts necessary for its assessment before the AO. The gifts were made by the close-relatives and therefore the element of natural love and affection could not be ruled out. The assessee has filed an explanation in this behalf and the same could not be said to be not bona fide. Merely because the assessee could not prove the credit-worthiness of the donors, it does no....