2016 (9) TMI 996

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....961 (hereinafter referred to as 'the Act') vide his order dated 28.12.2007 for assessment year 2005-06. Penalty levied by Assessing Officer u/s 271(1)(b) of the Act vide his order dated 24.06.2008 First we take up ITA No. 2654/Kol/2013 (AY 05-06) 2. Solitary ground raised by the assessee per its appeal as under:- "1. For that in the facts and circumstances of the case the assessment order passed was in violation of principal of natural justice hence is bad in law and be quashed. 2. For that in the facts and circumstances of the case the Learned Commissioner of Income Tax Appeals erred in upholding the addition of Rs. 8,00,000/-. The addition was uncalled for and unwarranted and thus the same be deleted. 3. T....

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....ney received from her husband ( working in USA) through banking channel and in support of her claim she submitted her bank statement of both the accounts but Ld. CIT(A) rejected the plea of assessee and upheld the action of AO by observing as under:- "7.5 Here also the appellant could not satisfactorily explain the source of her investment and making after thought strategy to avoid the legitimate tax. Even she could not produce the financial statement in the shape of balance sheet, cash flow statement whatsoever it justify her disclosed investment and the source thereof. Therefore, the addition made by AO amount to Rs.8,00,000/- is hereby confirmed." Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal befo....

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....e rival contentions of both the parties as well as relevant material available on record. We have also carefully perused the materials brought to our notice. From the foregoing discussion, we find that assessee failed to produce her documentary evidence in support of investment made in RBI bond amounting to Rs. 8 lakh. As a result the addition was made by AO and subsequently confirmed by Ld. CIT(A). From the submission of Ld. AR we find that assessee has received a sum of Rs. 8.50 lakh in an account maintained jointly with her husband. The bank statement and salary details of assessee's husband have been duly furnished. In our considered view the source of investment has been duly explained by submitting the documents in the form of paper b....

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....] [section 271GA,] [section 271GB,] [section 271H,] [section 271-I,] clause (c) or clause (d) of sub-section (1) or sub-section (2) of section 272A, sub-section (1) of section 272AA] or [section 272B, or] [subsection (1) [or sub-section (1A) of section 272BB or] [sub-section (11) of section 272BBB or] clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure.] From a plain reading of the above Sec. 273B of the Act, we find that no penalty shall be levied upon assessee if it is proved that there was a reasonab....