2018 (6) TMI 510

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....onsideration declaring a total income of Rs. 4,92,990/-. In the assessment completed u/s 143(3)/147 vide an order dated 17.03.2014, the total income of the assessee was determined by the A.O. at Rs. 1,43,00,126/- after making the following two additions: "1. Addition made on account of rent free accommodation Rs. 96,00,000/- 2. Addition made on account of unexplained expenditure incurred through credit card Rs. 42,07,136/" 3. Against the order passed by the AO under section 143(3)/147, an appeal was preferred by the assessee before the Ld. CIT(A) and after considering the submissions made by the assessee as well as the material available on record, the Ld. CIT(A) sustained the addition made by AO on account rent free ac....

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....the appellant was, and that these were through banking channels and not by cash. I also find that the Ld. AO has not brought forth any material to suggest that any of the subject credit card payments were made directly by the appellant himself out of any undisclosed source of income and not by the companies whose chairman the appellant was. I find that the matter has been decided against the appellant in appeal, only for the sole reason that the appellant was unable to produce necessary evidence by way of debit vouchers of concerned companies, and he produced only some sample bills which were acceptable to the Ld. AO and the Ld. CIT(A), but to that extent only. Therefore, I find that the matter was fit enough for confirmation of the impugne....

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.... the assessee. I have carefully perused the decisions relied upon by the appellant, which have also been discussed in this appellate order in the earlier paragraphs. It is also quite true that the 1st Appellate Authority has directed that 10% of the balance expenses be confirmed as to be personal in nature, and that this was on the basis of estimate. Therefore, theses were good enough for part-confirmation of the quantum additions, but in my considered view are not quite sufficient to attract a penalty for concealment or for submission of for inaccurate particulars of income. In my considered view of the facts and circumstances, the impugned penalty u/s 271(1)(c) would not be sustainable for the confirmation of the quantum addition of Rs. 2....

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....he Hon'ble Bombay High Court and the Hon'ble Patna High Court is that issuance of notice is an administrative device for informing the assessee about the proposal to levy penalty in order to enable him to explain as to why it should not be done. Mere mistake in the language used or mere non-striking of the inaccurate portion cannot by itself invalidate the notice. The Tribunal Benches at Mumbai and Patna being subordinate to the Hon'ble Bombay High Court and Patna High Court are bound to follow the aforesaid view. The Tribunal Benches at Bangalore have to follow the decision of the Hon'ble Karnataka High Court. As far as benches of Tribunal in other jurisdictions are concerned, there are two views on the issue, one in favour of the assessee....