2019 (2) TMI 1203

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....n of income for the year under consideration on 29.07.2013 declaring a total income of Rs. 5,38,680/-. In her bank account with State Bank of India, the assessee had made total cash deposits of Rs. 4,35,000/- during the year under consideration. During the course of assessment proceedings, the assessee was called upon by the AO to explain the source of the said cash deposits. The explanation offered by the assessee as regards the source of cash deposits was accepted by the AO except to the extent of Rs. 1,55,000/- for the following reasons: "That sums totalling to Rs. 1,28,000/- was withdrawn during F.Y. 2012-13 by her from her a/c held with UBI and deposited the same into her said a/c held with SBI for monthly instalment deposited....

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....nd since the explanation offered by the assessee in response to the show-cause-notice issued during the course of the said proceedings was not found acceptable by him, the AO imposed a penalty of Rs. 31,390/- u/s 271(1)(c) of the Act. 4. The penalty imposed by the AO u/s 271(1)(c) was challenged by the assessee in the appeal filed before the Ld. CIT(A) and the following submission was made on behalf of the assessee in support of her case: "During the concerned year the appellant declared a total income of Rs. 5,38,680/- in her return filed on 29.07.2013. The appellant does not have any personal expenses since her husband is also an income tax assessee. The appellants husband, (Shri Amitav Nag) has declared tota....

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....anted and further the appellant had deposited the tax amount well before the stipulated time. Having considered the appellant's submission / contention, I find that the penalty provision especially us/ 271(1)(c) read with Explanation 1 provides for imposition of penalty especially no plausible and / or reasonable explanation is furnished. The appellant has not been able to offer the explanation nor she could substantiate such explanation, if any and hence the AO is wholly justified in imposing such penalty. Further, no reasonable cause has been given for such failure. Hence the imposition of penalty is confirmed. Hence this ground of the appellant fails. Grounds No. 1 to 5 are dismissed. Ground No. 6 is general." Aggrieved by the order o....