2020 (4) TMI 523

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....of appeal. Facts in all years are identical except variation of additions/amount of penalty levied under section 271(1)(c), therefore, all the appeals were clubbed, heard and are decided by common order. For appreciation of fact, the appeal for Assessment Year 2009-10 is treated as lead case. The assessee has raised the following grounds of appeal: The assessee prefers an appeal against an order dated 11/05/2018 passed by the Learned CIT(A)-48, Mumbai on following amongst other grounds, each of which is without prejudice to any others: 1. On the facts and circumstances of the case, the Ld. CIT(A) erred in confirming the penalty order u/s.271(1)(c) is invalid and void-initio for the reason that the notice u/s.274 dated 29/1....

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....n the said search action, it was revealed that they have obtained certain accommodation entries. It was further revealed that assessee is one of the parties who has accommodation entries to M/s Navjeevan Charitable Trust during the relevant Financial Year 2008-09. A survey action was also carried out on assessee on 27.10.2016. During the survey statement of assessee was recorded under section 133A. In the statement, the assessee admitted that assessee through its proprietary concern provided accommodation entry to Navjeevan Charitable Trust. On the basis of search and survey action, a notice under section 153C was issued to the assessee. In response to the notice, the assessee filed return of income on 10.05.2016 declaring income of Rs. ....

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....s furnishing working of tax allegedly sought to be evaded in all Assessment Years. The penalty of 100% is leviable only on the tax sought to be evaded. The working of penalty is not correctly mentioned in all the Assessment Year. The ld. AR of the assessee furnished the following working of tax sought to be evaded:   Particulars 2009-10 2010-11 2011-12 2012-13 A Amount of tax on assessed Income           Total income assessed 547,190 488,030 673,550 261,980   Tax on assessed income 71,231 53,154 70,771 8,444 B Tax on returned Income           Returned Income 8,940 172,730 172,82....

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....on accommodation entry provided to M/s Navjeevan Charitable Trust. The Assessing Officer estimated the income @ 1% of the total accommodation transaction receipt in the Bank statement of proprietary concern of the assessee. The Assessing Officer found that there was total transaction during the year of Rs. 5.38 crore. The Assessing Officer made addition of 1% commission on the entire transaction. No further appeal was filed by assessee against the said addition in the quantum assessment. We are conscious of the fact that penalty proceeding are separate and independent. The penalty under section 271(1)(c) is not automatic on the basis of additions made or part of the additions sustained in the appeal. In the assessment, the addition can b....