TaxTMI 
TaxTMI 
2017 (3) TMI 974
X X X X Extracts X X X X
X X X X Extracts X X X X
....t, 1961. 3. Brief facts of the case are that the assessee has filed his return of income on 31.3.2008 declaring total income of Rs. 1,04,76,295/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. After an analysis of details, the ld.AO has determined taxable income of the assessee at Rs. 1,19,44,960/-. The AO has made various additions to the total income of the assessee. Such additions are summarized in penalty order. They read as under: "1. Salary income as an M.P. : Rs. 1,66,267/- 2. Agriculture income held as income from other soures in absence of evidences : Rs. 1,90,000/- 3. Cash difference : Rs. 74,696/- 4. Cost of acquisition of Rs. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... was misplaced even receipts fro the next year was shown, payments received for the year was reflected in Bank statement also. This addition itself is harsh to me penalty on this amount is unwarranted. 3. An Addition for cash diff of Rs. 74,996 was made. This was explained to the Ld A.O. that this addition is not correct as it was due to just the diff of date mentioned in voucher and entered in the computer, entries on vouchers were correct and there was negative cash balance because of wrong date at the time of entry in software, change of date was not done, which resulted negative cash on a particular date it was not accepted by Ld A.O. as this addition itself was harsh penalty on this is not warranted at all. 4. An Additions for co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essing Officer or the Commissioner (Appeals) or the CIT in the course of any proceedings under this Act, is satisfied that any person (a) and (b)** ** ** (c) has concealed the particulars of his income or furnished inaccurate particulars of such income. He may direct that such person shall pay by way of penalty. (i)and (Income-tax Officer,)** ** ** (iii) in the cases referred to in Clause (c) or Clause (d), in addition to tax, if any, payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or fringe benefit the furnishing of inaccurate particulars of such income or fringe benefits: Explanation....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tuation in which the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fiction, by way of Explanation I to section 271(1)(c) postulates two situations; (a) first whether in respect of any facts material to the computation of the total income under the provisions of the Act, the assessee fails to offer an explanation or the explanation offered by the assessee is found to be false by the Assessing Officer or Learned CIT(Appeal); and, (b) where in respect of any fact, material to the computation of total income under the provisions of the Act, the assessee is not able to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Rs. 1,90,000/- claimed by the assessee as agriculture income is concerned, the case of the AO is that the assessee failed to furnish evidence showing generation of agriculture income. The explanation of the assessee is that he was having evidence for all these years and shown to the AO in subsequent years, meaning thereby, the assessee was having agriculture land. He failed to produce bills and vouchers for the expenditure incurred in connection with the agriculture activities or bills exhibiting sale of agriculture produce. But it is pertinent to keep in mind that a person has been claiming agriculture income in the past and in subsequent years and having agriculture land, then the addition to his income for not showing exact details of ....