2017 (9) TMI 658

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....he Income Tax Act, 1961 (hereinafter referred to as "the Act"). 2. Briefly stated, it was noticed by Assessing Officer (AO) in the course of scrutiny assessment for the AY 2008-09 that assessee has obtained unsecured loan of Rs. 43 lakhs from one M/s.Sudarshan Enterprise. The AO on verification of PAN data on computer found that the PAN of the depositor M/s.Sudarshan Enterprise mentioned in the confirmation file does not pertain to it. Therefore to verify the genuineness of the transactions, a notice under s.133(6) of the Act was issued to M/s.Sudarshan Enterprise. In response thereof, M/s.Sudarshan Enterprise denied having made any transaction with the assessee as claimed. Show-cause notice was accordingly issued to the assessee for exp....

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....The AO made addition u/s 68 of the Act and penalty proceedings u/s 271(1)(c) were initiated by issuing notice u/s 274 r.w.s. 271(1)(c)of the Act. 4.1 The appellant filed appeal before the CIT(A) against the initiation of penalty u/s 271(1)(c) which was dismissed by CIT(A)-VI, Ahmedabad vide order dtd. 16-02-2012 stating that no appeal lies against the initiation of penalty. 4.2 On disposal of the appeal of the appellant as mentioned above by CIT(A), the AO imposed penalty under consideration vide order dated 20-03-2014. The appellant objected against the imposition of penalty on the following grounds : i) The penalty imposed by the AO is barred by limitation of time period, as notice for imposition of penalty was ....

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....ssee was guilty of concealing of income or furnished inaccurate particulars of income, Tribunal was justified in deleting penalty u/s 271(1)(c) levied by the AO. Respectfully following the judgement of the Hon'ble High Court of Gujarat, Ahmedabad, this contention of appeal of the appellant is allowed as facts of the case are identical to the facts of the case decided by the jurisdictional High Court. iii) The next contention of the appellant is that the appellant has agreed for the additions during the course of assessment proceedings with specific request to buy peace of mind and avoid further litigation. The appellant relied upon the case of Sir Shadi Lal Sugar & General Mills Ltd. (168 ITR 705) (SC) in which it has been held....

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....sessee where the assessee had initially attempted to mislead the Income Tax Department and was left with no choice had to finally concede the income when no shelter was available in sight to the assessee with a view to escape the clutches of penalty. The Ld.DR submitted that the disclosure made was not voluntarily at all. The request of the assessee not to impose penalty was not accepted by the AO at all. The Ld.DR referred to the decision of the Hon'ble Supreme Court in the case of MAK Data Pvt Ltd. vs. CIT 358 ITR 593(SC) and submitted that the aforesaid decision squarely governs the issue. 7. We have carefully perused the orders of the authorities below as well as the submissions made on behalf of the revenue. We observe that the addi....