TaxTMI 
TaxTMI 
2017 (3) TMI 1223
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....ceedings u/s.271(1)(c) of the Income Tax Act, 1961; in short "the Act". Case called twice. None appears at assessee's behest. It is accordingly proceeded ex parte. 2. The assessee is stated to be a commission agent dealing with old vehicles. The Assessing Officer framed a regular assessment in his case on 29.12.2009. He found in course thereof that the assessee had made cash deposits of Rs. 15,58,100/- in his Axis Bank Savings account without offering any explanation. He invoked Section 68 of the Act to treat the above deposits as unexplained cash credits. He further initiated the impugned penalty proceedings u/s.271(1)(c) of the Act alleging concealment of income. 3. The assessee preferred appeal. The CIT(A) upheld Assessing Officer'....
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....e. Further, with respect to the sale proceeds of Rs. 7,16,709/- the appellant has not explained as to when was the vehicle purchased and for how much was the vehicle purchased. All the deposits made by the assessee are in respect of sale proceeds of various vehicles or commission received. Admittedly, there are cash withdrawals as well as cash deposits. On 17/5/2005 the assessee has deposited a cash of Rs. 32,000/-, on 22/05/2006 the assessee has deposited a cash of Rs. 3.5 lakh and on 23/05/2006 the assessee has deposited cash of Rs. 1.1 lakh. Therefore, within a weeks time, the assessee has deposited Rs. 4.92 lakhs of cash for which no explanation is there. Further after depositing the cash the total balance becomes Rs. 6,05,164/- and the....
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....- which is almost same as what the AO has added. In view of the above, the addition made by the AO is restricted to Rs. 15,32,778/- and therefore this ground of appeal is partly allowed." 3.4 Aggrieved, the assessee is in appeal before us against the order of the learned CIT(A). 4. At the time of hearing the learned the learned AR reiterated the submissions made before the authorities below. On the other hand, the learned DR relied on the order of learned CIT(A). 5. We have heard the rival submissions and perused the orders of the authorities below and also carefully considered the paper book filed by the assessee along with other materials on record. In a nutshell the learned CIT(A) has sustained the additions based on the followi....
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....nt of Rs. 6,00,000/- paid to Bhagwati Caterers Pvt. Ltd. can be considered as the amount derived from the capital and profit earned by the assessee withdrawn from the business as drawings. At the same, time considering the return of income filed by the assessee wherein the income earned was declared at Rs. 1,55,820/- for the relevant assessment year, previous three years' accumulated profit can be estimated at Rs. 1,50,000/-. Accordingly, the income of the assessee can be estimated as follows:- (i) Returned income Rs.1,55,820/- (ii) Peak Credit Rs.7,03,440/- (iii) Amount paid to Bhagwati Caterers Rs.6,00,000/- Total Rs.14,59,260/- Less: accumulated profit for the previous 3 years Rs. 1,50....
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....nder challenge. 5. We have heard learned Departmental Representative strongly supporting the impugned penalty as levied by both the lower authorities by holding that the assessee has concealed its taxable income. It however emerges from this tribunal's quantum order that it is not an instance wherein the assessee had not offered any explanation or adduced altogether false explanation in order to state source of the impugned cash deposits. The fact remains that the assessee has already proved to have been engaged in commission business in automobile sector wherein it is not always possible to file all the relevant confirmations. Learned co-ordinate bench also appears to have benefit of opening balance, accumulated profit as well as peak c....