2017 (5) TMI 1616

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or the AY 2010-11 on 07/06/2010 admitting a total income of Rs. 4,25,930/- and the return was processed u/s 143(1). The case of assessee was selected for scrutiny and the AO called for the details by issuing statutory notices. The assessee furnished the information called for along with books of account. 2.1 On verification of Balance Sheet, the AO noticed that the assessee has shown 'Cash at Bank' to the extent of 70,340. The AO observed that during the course of scrutiny the assessee had furnished two bank accounts i.e. one from Central Bank of India, Kadapa and the other from IDBI Bank, Kadapa. The two bank accounts were thoroughly verified and the outstanding balance of Central Bank of India in A/c SB No.6345 as on 02-01-2010....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ility to furnish the details of the creditors and agreed for the addition of Rs. 31,91,851/-. Accordingly, the AO made the addition as agreed by the assessee. 3. On appeal before the CIT(A), the CIT(A) confirmed the addition made by the AO. 4. Aggrieved by the order of the CIT(A), the assessee is in appeal before us. 5. Before us, the ld. Counsel for the assessee submitted that subsequent to the issue of cheques to the four persons, assessee has paid cash payments on various dates to the alleged four trade creditors and, therefore, addition may be deleted. 6. Ld. DR, on the other hand, relied upon the orders of revenue authorities. 7. We have considered the rival submissions and perused the material facts on record. It is obs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is claim by way of documentary evidence after noticing by the AO the difference in the balance sheet between cash in hand and the bank balance. 11. Thereafter, the AO initiated penalty proceedings u/s 271(1)(c) and levied penalty of Rs. 9,78,650/-. On appeal before the CIT(A), the assessee submitted as under: a. the addition was an agreed addition, b. appellant voluntarily surrendered income of Rs. 32 lacks on four trade creditors account to purchase peace of mind with the department and c. the appellant's request/condition not to levy penalty u/s 271(1)(c) is contained in the same letter of surrender dt. 26.12.2012. The A.O. has neither brought any other cogent evidence on record (except the volun....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s to pay taxes due and voluntary part payment of regular tax within his limited financial resources. b. The appellant further submits that he appeared before the A.O. on 29.05.2013 and on 21.06.2013 and requested him not to levy penalty u/s 271(1)(c) as agreed during the assessment proceedings. On 29.05.2013 the appellant approached the A.O.'s office with a letter requesting to drop (not to levy) penalty proceedings and on 21.06.2013, the appellant also handed over a challan supporting part payment of Rs. 50,000/- regular tax in the AO.s office. c. As the auditor is unwilling to appear to hearings, the appellant had to attend before the AO. by himself and requested the AO. to drop the penalty proceedings u/s 271 (1 )(c....