TaxTMI 
TaxTMI 
2020 (10) TMI 1198
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....ountry. 3. During the course of hearing, the ld. AR submitted that the assessee has filed his return of income declaring total income of Rs. 16,48,450/- u/s 139(1) on 27.11.2009. The matter was selected for scrutiny and order u/s 143(3) was passed wherein the AO estimated rental income in respect of Chitrakoot event place at Rs. 3,50,000/-. Being aggrieved, the assessee carried the matter in appeal before the ld. CIT(A) who has sustained the addition to the extent of Rs. 2,00,000/- and in respect of which, the Assessing Officer has levied the penalty u/s 271(1)(c) amounting to Rs. 68,000/-. It was submitted that the levy of penalty u/s 271(1)(c) is not mandatory but the law requires that where the AO in the course of any proceeding is sa....
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....r facts and circumstances, the Tribunal in assessee's own case for A.Y 2011-12, A.Y 2012-13 and A.Y 2014-15 has deleted the penalty as levied u/s 271(1)(c) and the matter is thus squarely covered by the said decision and the penalty so levied may thus be deleted. 4. Per contra, the ld. DR submitted that the assessment in this case was reopened u/s 148 pursuant to information gathered during the subsequent assessment year i.e. A.Y 2010-11 and enquiries made at that time revealed that said party plot was booked for marriage, birthday parties, engagements, organizing Garba, exhibition for business products, etc for around 6 months in a year and the assessee has not offered any income in his return of income. It was accordingly submitted tha....
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.... that during the course of assessment proceedings the assessee stated that income from chitrakoot place is nil being receipt were Rs. 1,46,500/- and expenditure was of Rs. 1,46,900/- but assessee failed to produce any kind of receipt book for money received from the parties and failed to spell out the address of 14 persons from whom rent received and also failed to furnish the address of the persons to whom payment was made for expenses, leaving no option but to estimate the income. Further, before finalizing the penalty proceedings a show cause notice dated 19.03.2019 was also issued but no compliance was made by the assessee in this regard. Now, regarding remand report the opportunity was again provided to the assessee vide lette....
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.... "6. We have heard the rival contentions and purused the material available on record. We find that for A.Y 2011-12, the rental income has been determined by the Assessing officer not basis any material or direct evidence found against the assessee but basis the hypothesis that the plot ought to have been let-out at least for the number of occasions on which the Mahurats are there as per the Panchang i.e. 28 during the respective year. Therefore, for the remaining 11 Mahurats other than 17 mahurats for which assessee has already offered rental income, basis the average rate of booking of Rs. 15,000/-, rental income was estimated at Rs. 1,65,000/-. Further, rental for small parties, exhibition and garba party were again estimated by the As....
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.... levied by Assessing Officer, in the facts and circumstances of the present case. The relevant portion of Para 7 of order of the Tribunal is reproduced as under:- Para 7. ..... ....... ..... ..... ...... ......The enquiry conducted by the AO may lead to arrive at the findings as to whether the particulars disclosed are truthful or false or not proved to be satisfactory. In the first case it would be a positive case of no concealment, in second case it would be a positive case of concealment and in third case benefit of doubt will go in favour of the assessee. The case of the assessee falls within third category where the alleged fact of introduction of capital is found to be not proved satisfactorily. Therefore, it is not a case of....
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.... sand, steel, bajri etc. were self made etc. Assessee explained reasons for the above defects which were not accepted by the AO as not found satisfactory. The AO accordingly made estimation. The circumstances suggest that it may be just and proper case of making estimated trading addition but an inference therefrom cannot be drawn beyond doubt especially keeping in mind the nature of work in not maintaining those books and details supported with proper vouchers etc. that there was concealment of particulars of income or furnishing inaccurate particulars thereof on the part of the assessee to attract the penal provisions. In view of above discussion and keeping in mind the fact and circumstances of the present case, we are of the view that t....