TaxTMI 
TaxTMI 
2017 (7) TMI 958
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....ndigarh (in short, "the Tribunal") in ITA No. 813/CHD/2015, for the assessment year 2007-08 claiming following substantial questions of law:- (i) "Whether the authorities are right/justified in imposing the penalty under Section 271(1)(c) of the Income Tax Act, 1961 inspite of the fact that the true and full disclosure regarding the gifts received from friends and relatives on the occasion of daughter's marriage of Appellant was made before the authorities? (ii) Whether mere disallowance of particular claim for exemption under a statutory provision, would call for initiation and imposition of penalty under Section 271(1) (c) of the Income Tax Act, 1961 particularly when the complete disclosure of facts/entire inco....
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....e treated as income from other sources as the aggregate amount as gift was received through banking channel and there was no receipt of cash. According to the assessee, the Assessing Officer during the course of assessment proceedings did not doubt the credit-worthiness of the donors or the receipt of gifts through the banking channel from his friends and relatives. Inspite of that, the addition was made by Assessing Officer contrary to the provisions of Section 56(2)(vi) of the Act. The Assessing Officer also initiated penalty proceedings under Section 271(1)(c) of the Act. The Assessing Officer did not record his satisfaction as to whether the assessee had concealed the particulars of his income or furnished inaccurate particulars of his ....
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....at the assessee had enhanced the capital account by making an addition of Rs. 21,07,513/- on account of gifts received from various persons on the occasion of marriage of his daughter. The assessee claimed that the said gifts fell under exception contained in Section 56(2)(vi) of the Act. The assessee in order to draw benefit of the exemption under Proviso to Section 56(2)(vi) of the Act was required to prove that the said gifts were received from any relative described thereunder or had been received on the occasion of marriage of the individual i.e. assessee. It has been recorded by the Tribunal that no explanation was offered by the assessee to explain the genuineness of the gifts. He merely gave the name of the donors but did not prove ....
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....lanation and whatever explanation was offered was not substantiated through any evidence or material on record therefore explanation 1 to Section 271(1)(c) of the Income Tax Act is clearly attracted in the case of assessee and will prove deemed concealment on the part of the assessee so as to levy the penalty under Section 271(1)(c) of the Income Tax Act." 6. Adverting to the judgment relied upon by learned counsel for the appellant-assessee, it may be noticed that in CIT Ahmedabad Vs. Reliance Petroproducts Private Limited (2010) 322 ITR 158, it was held by the Apex Court that for imposition of penalty on account of concealment of income it must be shown that the conditions under Section 271(1)(c) of the Act must exist. There has to be ....