2021 (6) TMI 118

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....6-07. 2. The only issue raised by the assessee in the various grounds of appeal is that the assessee has assailed the order of Ld. CIT(A) confirming the penalty of Rs. 9,35,24,310/- thereby upholding the order passed by the AO under section 271(1)(c) of the Act. 3. The facts in brief are that the assessment in this case was framed under section 143(3) of the Act vide order dated 07.11.2008 by making an addition of Rs. 27,78,50,000/- received towards share application money for allotment of 55,57,000 equity shares. The allegation of the AO was that the assessee has routed his unaccounted money and thus added the same under section 68 of the Act and penalty proceedings were initiated for filing inaccurate particulars of income. After ta....

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....ven discussing or mentioning the charge under which the penalty was proposed to be levied. The Ld. A.R. submitted that this is a fatal mistake on the part of the AO which goes to the route of the penalty order and is not curable. The Ld. A.R., therefore, submitted that the said order may kindly be quashed as being no order in the eyes of law. The Ld. A.R., however, fairly admitted the fact that quantum proceedings have been restored by the Tribunal to the file of the Ld. CIT(A) to decide the issue afresh and till date no order has been passed by the Ld. CIT(A). 5. The Ld. D.R., on the other hand, submitted that though in the penalty order the AO has forgotten to mention the charge on which the penalty was levied but the same is not relev....

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....d in detail in the assessment order clearly indicates that the assessee had mobilized the unaccounted cash by creating various layers of transaction of which the assessee was the ultimate beneficiary. Hence the assessee's contention that it has not concealed the income or furnished inaccurate particulars is not tenable. 5.2 Cumulative effects of all the facts of the case clearly indicate manipulation at every stage of the transactions with an intension of infusing huge amounts of funds into the books of account of the assessee company which was later utilized to repay its dues. 6. Since the assessee has failed to prove the genuinity of the transactions, it is concluded that the assessee has channeled its own unaccounte....