2010 (2) TMI 1224

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....ed by time. 3. That the AO/Additional Commissioner of Income Tax have not validly discharged their burden to prove the real fault of the assessee and the learned CIT(A) erred in confirming the penalty. 4. That the penalty imposed is on mere technical considerations and not valid in law. Therefore, it is prayed that on the facts and on the legal aspects penalty imposed is liable to be cancelled and may please be cancelled." 2. The assessee, Manohar Lal Thakral, Karta HUF is proprietor of the concern M/s. Fancy Wool Enterprises and was enjoying rent, interest and dividend income . Return declaring income of Rs. 1,35,010/- for the financial year 2002-03 relevant to assessment year 2003-04 was filed on 30.11.2003, ....

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....00/- 13.9.2002 " 370736 -do- 3,00,000/- 29.10.2002 " 370743 -do- 3,00,000/- Total payments made as & ½ share of price of properties      14,00,000/- All the above stated payments made through account payee demand drafts. 6. During the course of assessment proceedings in the case of Smt. Kusum Lata Thakral for the asstt.year 2003-04, the AO, Ward 3, Panipat, examined and found having payments made by the assessee on behalf of Smt. Kusum Lata Thakral to M/s. Babylon Builders Pvt. Ltd., Gurgaon, from 21.5.2002 to 29.10.2002. Thus it was taken that instead of making the payments to Smt. Kusum Lata Thakral, the assessee made payments to M/s. Babylon Builders Pvt. Ltd. in contraventi....