2019 (8) TMI 503

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....the Act'). First we take up the assessee's appeal in ITA No.835/Ind/2017. The assessee has raised following grounds of appeals:- 1. That on the facts and in the circumstances of the case and in law, the findings of learned A.O. are bad and opposed to facts, equity and law and are, therefore, unsustainable law. 2. That on the facts and in the circumstances of the case and in law, the learned A.O. erred in making a scrutiny assessment u/s 143(3) of the Act and wrongly assumed loans and advance of Rs. 10.00 lacs from L.N. Gupta, without reason and open the case u/s 148 of the Act. 3. That on the facts and in the circumstances of the case and in law, the learned A.O. erred in imposing penalty of section 271D of Rs. 10....

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....refore, a notice u/s 271D of the Act was issued and after considering the submissions, the A.O. levied penalty u/s 271D of the Act of Rs. 10 lakhs. 3. Aggrieved by this, the assessee preferred an appeal before Ld. CIT(A), who after considering the submissions sustained the penalty. Before us, Ld. Counsel for the assessee reiterated the submissions as made in the written submissions which are reproduced as under: 4. Ld. D.R. opposed these submissions and supported the order of the authorities below. Ld. D.R. relied on the provisions of section 271D of the Act and submitted that there is no ambiguity either on facts or on law. Therefore, the A.O. was justified in imposing the penalty. 5. We have heard the rival submissions, perused t....

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....e the Ld. Commissioner IT (Appeals)-I has dismissed the appeal of assessee and confirmed the additions of Rs. 10,00,000.00 lacs as cash deposits without appropriate opportunity of hearing. 5. The appellant craves leave to add/alter any of the grounds of appeal before or at the time of hearing. 7. The facts are identical as were in ITA No.835/Ind/2017 except that in the present case it is inferred that the repayment of loan was made in cash. Before the A.O., it was submitted by the assessee that there is no evidence suggesting that the loan was repaid in cash. However, the A.O. did not accept the contention of the assessee and proceeded to impose penalty u/s 271E of the Act. The assessee preferred an appeal before Ld. CIT(A), ....

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....A.O. ought to have brought some material suggesting that the assessee has made repayment of loan in cash, therefore, we hereby direct the A.O. to delete the penalty. Therefore, the appeal of the assessee in ITA No.836/Ind/2017 is allowed. 10. In the result, the appeal of the assessee in ITA No.835/Ind/2017 is dismissed and the appeal of the assessee in ITA No.836/Ind/2017 is allowed. Order was pronounced in the open court on 07 .08.2019. ============= Document 1 Search u/s 132 Found & seized Details of Loose Paper:- SYNOPSIS 28.10.10 At Residential premises of Shri L.N. Gupta LPS Pg 82 and 83 LPS- Pg 82, 83 (Penalty order, Pg 2) 1. Pg 82 is the receipt dated 24.10.10/24.04.11 in the letter head of assessee....

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....The Basis of addition being LPS -82 and 83 were found at the premises of Shri L.N. Gupta, who surrendered on behalf of his son Shri Anil Gupta. That the Loose paper contents may be used against the person from whom it was found but it cannot be used against any third party like the assessee. The presumption under section 132(4A) can be applied against the person from whom the books of account or the documents were found and not against any third party. In support of this contention, reliance is placed upon the following decisions :- âš«CBI v. V.C. Shukla 3 SCC 410 (SC). Prarthana Construction (P.) Ltd. v. Dy. CIT [2001] 118 Taxman 112 (Ahd.-Trib.). Unique Organizers & Developers (P.) Ltd. v. Dy. CIT [2001....

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....ed the facts of the case, penalty orders and the submissions filed by the appellant. All the grounds of appeal are being taken up together. The appellant in his submissions has broadly argued against the imposition/levy of penalty for the following reasons: 6. 5. The penalty has been on the basis of mere assumptions and vague documents Loose paper was found at the premises of Sh. L. N. Gupta. However the loan was given by Sh. Anil Gupta. Though the cheque and letter found from the premises of Sh. L. N. Gupta, belonged to the appellant, but the same was not signed by him. The A.O/Addl.CIT presumed that money was refunded/repaid to Sh. Anil Gupta/L N. Gupta The appellant is a senior citizen There a....