2016 (12) TMI 1186

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....A) arising from the penalty order dated 20th March, 2012 passed by the AO u/s 271(1)(c) of the Income-tax Act,1961 (Hereinafter called "the Act"). 2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called "the tribunal") read as under:- "I) The assessee is a bonafide Tax Payer since the year 1994.He is filing the Income tax return regularly since 1994.As he is not from the Commerce Background, for filing the income tax regularly he used to take the services of a Chartered Accountant, Mr Mehboob. Mr Mehboob used to do all the tax related matters such as filing returns, paying income tax etc. However, suddenly he died in the month of April 2006. 2) T....

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....ot intentional but merely it was an accidental. 9) So it is humbly prayed that the penalty raised by the Assessing Officer should be deleted by the learned ITAT." 3. The brief facts of the case are that the assessee in this case is aggrieved by the levy of penalty u/s 271(1)(c) of the Act. The only addition made in this case is on account of unexplained cash deposits in the bank account of the assessee with ICICI Bank amounting to Rs. 9,18,775/-. The assessee is engaged in the consultancy of computer software and also earned income from salary. It was observed by the A.O. that the assessee had deposited total cash amount of Rs. 15,60,281/- in his saving bank account. During the course of assessment proceedings, the assessee was asked ....

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....ant with ICICI Bank Ltd. During assessment proceedings, it was explained by the appellant that these cash deposits were sourced from cash withdrawals made by him from the same account. The AO took the said explanation into account and found that the withdrawals explained only an amount Rs. 6,41,506/- leaving an amount of Rs. 9,59,647/- as income from undisclosed sources. In appeal it has only been stated that the appellant was filing returns from 1994 onwards and that his regular Chartered Accountant died in April 2006. It was further stated that thereafter the late A.R.'s wife filed the return and made the mistake since she was not a qualified CA. It was further stated that the appellant gave the explanation during assessment proceedin....

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....as the assessee could not explain the source satisfactorily of the remaining amount of cash deposit of Rs. 9,59,647/-. The ld DR submitted that the assessee had explained before the authorities below that the Chartered accountant of the assessee expired in April, 2006 and the wife of the C.A. was looking after the same. The ld. D.R. contended that this is not a bonafide explanation as the C.A. of the assessee expired in the year 2006 while the impugned assessment year is 2009-10 which is after expiry of more than three years , and the return of income was filed after three years of passing away of the C.A. The assessee stated that the assessee had hired the services of wife of the C.A. who is not qualified hence error had taken place, which....