2019 (11) TMI 1629

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....merges from the relevant record are that the assessee was salaried employee of the State Government undertaking. He filed his return of income on 1.9.2010 showing total income at Rs. 3,49,624/-. The same was processed under section 143(1); however, the case of the assessee was selected for scrutiny assessment as per CASS and issued and served notice under section 143(2) of the Act. On the basis of AIR information received, it revealed to the Department that assessee has deposited cash of Rs. 25,30,000/- in his saving bank account no.20045821969 with State Bank of India, Civil Hospital, Ahmedabad. The ld.AO called for bank statement from the bank, and he noticed the cash deposits in the assessee's account as under: Date Amount deposite....

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....ated its submissions, but did not satisfy the ld.AO, who imposed penalty of Rs. 7,34,685/- being minimum penalty levable under section 271(1)(c) of the Act. Action of the AO was confirmed by the ld.first Appellate Authority. Assessee is now before me in further appeal. 5. With the assistance of the ld.representatives, I have gone through the record carefully. It is pertinent to mention here that the assessee had challenged addition on which penalty has been imposed vide quantum appeal in ITA No.362/Ahd/2014. This appeal has been dismissed by me on merit, and orders of the Revenue authorities stand confirmed. However, while going through the impugned penalty order, I am of the view that the same has to be analysised from different angle. ....

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....t in case of Manu Engineering Works (supra). In the said decision, the Division Bench came to the conclusion that language of "and/or" may be proper in issuing a notice for penalty, but it was incumbent upon the Assessing Authority to come to a positive finding as to whether there was concealment of income by the assessee or whether any inaccurate particulars of such income had been furnished by them. If no such clear cut finding is reached by the authority, penalty cannot be levied. It was a case in which in final conclusion the authority had recorded that "I am of the opinion that it will have to be said that the assessee had concealed its income and/or that it had furnished inaccurate particulars of such income." It was in this respect t....