TaxTMI 
TaxTMI 
2018 (4) TMI 575
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....f the Department, confirming the order of CIT (A). 3. This Court while admitting the appeals framed the following substantial questions of law: "In DBITA No. 330/2017 i) Whether on the facts and in the circumstances of the case and in law the Tribunal has erred in confirming the order of CIT(A) who deleted the addition of Rs. 37,03,900/- on account of unexplained cash deposits made in bank account? In DBITA No. 329/2017 i) Whether on the facts and in the circumstances of the case and in law the Tribunal has erred in confirming the order of CIT(A) who deleted the penalty u/s 27ID of the Act amounting to Rs. 33,00,000/- imposed by JCIT, Range, Jaipur on account of unexplained cash deposits made in bank a....
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....Sh. Girish Garg CA filed capital a/c and balance sheet of assessee and Sh. Narain Lal Choudhary as on 31.03.2011 with his letter dated 11.09.2013. Again the A/R of assessee on 28.10.2013 filed different capital a/c and statement of affairs of both assessee as well as his father Shri Narayan Lal Choudhary as on 31.03.2011. There was a drastic change in both capital account and atatement of affairs. However from perusal of the balance sheets and capital accounts of Shri Narayan Lal Choudhary, submitted by the A/Rs the following facts emerge:- SI. No. Name from whom amount received Amount Capital a/c as on Nature of payment Date of reply of the A/R 1. ....
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....rted by various judicial pronouncements. In the case of Kum. A.B. Shanthi, 255 ITR 258 (SC) the Hon'ble Court held that the object of introducing S.269SS is to ensure that a taxpayer is not allowed to give false explanation for his unaccounted money, or if he has made some explanation for the same. Similar views have also been expressed in the case of Sundarshan Cold Storage (P) Ltd. 296 ITR 188 (MP), Kasi Consultant Corporation 311 ITR 419 (Mad.) R.K. Singhal 221 ITR 412 (Raj.) and Bhalotia Eng. Work Ltd. 275 ITR 399 (Jharkhand). In view of the above, it is established that assessee has taken cash loan of Rs. 33,00,000/- in violation of section 269SS of the Act and therefore, the assessee is liable for penalty of Rs. 33,00,000/- i....
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....further observed that assessee's claim cash gift of Rs. 9lacs received from his father Sh. Narayan Lal, and cash gift of Rs. 24 lacs received from Narayan Lal HUF, is a concocted story of the purported gift and therefore AO considered the same is as unsecured loan accepted in cash in violation of section 269SS of the Act. AO has examined on oath of Sh Narayan Lal, father of the assessee but did not arrive at any adverse finding, and also has not made any reference in this regard in the assessment order. Assessee has also submitted that all the cash deposits made in bank accounts are verifiable from the cash flow statements filed before the AO and in the cash flow statement, source of Rs. 9,00,000/- is explained gift received from father Sh ....