2017 (12) TMI 1657

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....on of Rs. 5,15,000/- u/s.68 of the Act. 2. Briefly stated relevant facts of the case include that assessee is an individual and engaged in the business of online trading of the lottery under the name and style of M/s. Tulsi Distributors. Assessee filed the return of income on 18-10-2007 declaring total income of Rs. 22,09,046/-. Assessed income was determined at Rs. 56,63,035/-. During the year, assessee received deposit amounts from the subscribers amounting to Rs. 13,60,000/-. These amounts were received from 53 depositors. During the assessment proceedings, assessee could not discharge the onus by filing confirmation letters in respect of the 19 depositors. Therefore, AO proceeded to make addition of Rs. 13,60,000/- u/s.68 of the I.T.....

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....ss of the credits to the extent of Rs. 5,15,000/-. 5. Aggrieved with the said order of the CIT(A) who confirmed the penalty, the assessee is in appeal before us. 6. At the outset, Ld. Counsel for the assessee submitted that the AO never had any incriminating evidence to demonstrate the inaccurate particulars filed by the assessee. It is a matter of time that the assessee would have filed the confirmation letters provided sufficient opportunity is granted. Notwithstanding, Ld. Counsel for the assessee relied on various decisions to suggest that the addition made u/s.68 do not attract penalty u/s.271(1)(c) of the Act. 7. Bringing our attention to the decision of Mumbai Bench of the Tribunal in the case of Advaita Estate Development P....

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....e parties on this issue. There is no dispute on the fact that assessee furnished the names and addresses of 19 depositors amounting to Rs. 5,15,000/-. Each of the deposit vary from Rs. 15,000/- to Rs. 30,000/- per the depositor. It is not the case of the AO that there is any positive evidence against the assessee confirming the concealment of income or fakeness of the cash credits entered in the books of account of the assessee. It is merely a case of failure to file the confirmation letters in a proper format with all particulars mentioned in it. The names and addresses of the 19 depositors are already on record. It shows the existence of the basic details of the depositors. The details furnished by the assessee indicate the capacity of th....