TaxTMI 
TaxTMI 
2012 (3) TMI 647
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.... P.M. Jagtap, This appeal filed by the assessee is directed against the order of learned CIT(Appeals)-XVIII, Mumbai dated 13-12-2005 whereby he sustained the penalty imposed by the AO u/s 271(1)(c) to the extent that the same was in relation to addition of Rs. 3,50,000/- made to the total income of the assessee on ac....
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....ted the said addition made by the AO to the extent of Rs. 6,25,000/- on account of bogus gifts and to the extent of Rs. 62,500/- on account of premium paid for arranging the gifts. 3. As a result of sustenance of the addition made on account of gifts and premium paid thereon by the learned CIT(Appeals) in the quantum proceedings, a penalty notice was issued by the AO requiring the assessee to show cause as to why penalty u/s 271(1)(c) should not be imposed on the said additions sustained by the learned CIT(Appeals). In reply to the said notice, it was submitted by the assessee that the gifts were treated as bogus merely on the ground that the concerned donors had no financial capacity to give such gifts and there was no adverse material ....
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....tent of Rs. 3,50,000/- and accordingly he restricted the penalty imposed by the AO u/s 271(1)(c) only to the extent that the same was in respect of the addition of Rs. 3,50,000/-. Still aggrieved by the order of the learned CIT(Appeals), the assessee has preferred this appeal before the Tribunal. 5. We have heard the arguments of both the sides and also perused the relevant material on record. It is observed that the claim of the assessee of having received gifts from 8 donors aggregating to Rs. 11,25,000/- was supported by the gift deeds executed by the concerned donors. All the relevant details of the said donors such as, names, addresses, premium account Nos. were also duly given in the said gifts. The AO, however, treated the said gi....
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....cannot be imposed. In the case of CIT vs. Bhimji Bhanjee & Co. 146 ITR 145, cash credits were found in the books of the assessee. In the assessment proceedings, assessee admitted the existence of creditors and stated that he was not in a position to produce the parties in whose names the said cash credits appeared. The ITO worked out the amount of such peak credits and assessed the said amount as income of the assessee. He also imposed penalty u/s 271(1)(c) which was cancelled by the Tribunal. On reference, the Hon'ble Bombay High Court upheld the decision of the Tribunal holding that there was nothing on record to show that the amount of cash credits added to the total income of the assessee was his concealed income earned from....