TaxTMI 
TaxTMI 
2018 (7) TMI 119
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....neither concealment of income nor furnishing of inaccurate particulars of income within the meaning of section 271(1)(c) of the Act. 3. The appellant craves leave to add, alter, amend any ground of appeal." 3. The assessee in all the grounds of appeal has challenged the imposition of a penalty for Rs. 2,73,567/- u/s 271(1)(c) of the Act. 4. The briefly stated facts are that the assessee is an individual and engaged in the business of coal as coal merchant under the name and style of M/s Kishor Aishiran Sewani. The assessee in its balance sheet as on 31st March 2011 has shown certain outstanding sundry creditors for purchases amounting to Rs. 820,652/- only. But the assessee during the assessment proceedings failed to furnish complete present addresses of such parties/ creditors representing the outstanding amount of Rs. 820,652/- only. However, it was explained that the coal was purchased from local persons who are doing the business of coal making from jungle wood and for that purpose, Gram Panchayat authorized them. These persons were doing business on a small scale and therefore not keeping/maintaining books of accounts. Vouchers and weight slip support all the pu....
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....ncome, then it shall be deemed that the assessee has furnished the inaccurate particulars of income. Accordingly, the AO levied a minimum penalty of Rs. 2,73,567/- being 100% of the amount of tax sought to be evaded. 5. Aggrieved, assessee preferred an appeal to learned CIT(A). Assessee before the learned CIT(A) submitted that the addition was agreed to avoid the litigation and buy the peace of mind. Therefore, it cannot be alleged that the assessee has concealed the particulars of income and furnished inaccurate particulars of income. However, all the vouchers and weight slip were duly issued in support of purchases claimed by the assessee for Rs. 820,652/-. The purchases from the local persons were duly authorized in certificate of Gram Panchayat. However, learned CIT(A) disregarded the contention of the assessee and confirmed the order of AO by observing as under: "4.3. I have considered the appellant's submissions and the AO's observations. After the decision of the Hon'ble Supreme Court of India in the case of [2013] 38 taxmann.com 448 (SC), MAK Data (P.) Ltd., the appellant's contentions that since that addition was made on agreed basis hence no pe....
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....he AO is placed on Page 22 of the Paper Book which is reproduced as under: "I have enclosed along with letter dated 11-05-2014 statement showing details of purchases payments made in Asstt. Year 2011-12 and balance outstanding out of purchase during the year as on 31-03- 2011 and payment made in Asst. Year 2012-13 to these parties. You will find that mostly payment is made in next year i.e. in Asst. Year 2012-13 to the parties as shown in statement and small amount in case of some parties remaining which is paid in further next year." The learned AR also drew our attention on the chart depicting the payment made to the various sundry creditors in the subsequent year which is placed on page 9 of the Paper Book. The Weigh Bridge Slip supports all the purchases claimed by the assessee. The learned AR in support of assessee's claim has drawn out attention on Page 10 and 11 of the paper book, where the copies of the weighbridge slip were placed on a sample basis. The learned AR also submitted that the sundry outstanding creditors are arising from the purchases made by the assessee and the liability on account of purchases has not ceased to exist in the books of account....
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....r hand, the learned DR submitted that internal vouchers/ self-made vouchers claimed the purchases. There was no bill produced by the assessee from the parties except weigh slip. There was no justification furnished by the assessee for holding the payment of the sundry outstanding creditors. The learned DR also claimed that all the payments were made to the sundry creditors in cash. Therefore, the same cannot be verified for the external documentary evidence. The learned DR in support of his statement relied on the judgment of Hon'ble Supreme Court of India in the case of MAK Data Pvt. Ltd. vs. CIT reported in 358 ITR 593. The learned DR vehemently supported the order of authorities below. 6. We have heard the rival contentions and perused the materials available on record. In the present case, the assessee has shown sundry creditors of Rs. 8,20,652/- as on 31st March, 2011. The assessee failed to furnish the present current address of the parties to the AO during the assessment proceedings. Therefore, the same was treated by the AO as bogus. Accordingly, the addition was made to the total income of the assessee. However, the Assessee during the assessment proceedings cl....