TaxTMI 
TaxTMI 
2023 (4) TMI 885
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..... 2. The assessee raised following ground of appeal The learned Commissioner of Income tax (Appeals), National Faceless Appeal Centre, Delhi has erred in confirming the action of the assessing officer in respect of Levied the penalty u/s.274 r.w.s 271(1)(c) of the IT Act amounting to Rs.42,902/- on the alleged ground of addition made by the Assessing Officer on account of unexplained profit for Land trading of Rs.4,44,000/- is unwarranted, unjustified and bad in law. 2.1 The assessee has vide application dated 03-08-2021 pleaded before us for admitting the additional ground of appeal which reads as under: The Appellant above named most respectfully begs to raise the following additional ground of appeal before the Hon'ble Bench in r....
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....th the parties and perused the materials available on record. The Hon'ble Supreme Court in the case of National Thermal Power Co. Limited vs. CIT reported in 229 ITR 383 has held as under:- " Under section 254 of the Income-tax Act, 1961, the Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. The power of the Tribunal in dealing with appeals is thus expressed in the widest possible terms. The purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example, as a result of a judicial decision given while the appeal is pending before the Tribunal, it is ....
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....nd raised by the assessee for the first time. Accordingly, we admit the additional ground raised by the assessee. 6. The facts in brief are that the assessee is an individual and claimed to have earned income from salary and other sources. The assessee also carried real estate development in association with other persons. There was search operation under section 132 of the Act dated 30-05-2012 carried out at the premises of the assessee where in a certain papers /documents were found and impounded. As per page 2 to 4 of Annexure A-17 of seized paper/document, the assessee along with three other partners entered into a transaction of sale of agricultural lands of 3 vigha and 1.5 vigha and earned unaccounted income. Accordingly, an addition....
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....d the particulars of income and levied the penalty of Rs. 42,902/- only being 100 of the amount of tax sought to be evaded. 9. On appeal by the assessee, the learned CIT(A) also conformed the levy of penalty by observing as under: c) It is a fact that documents which were found at Appellants premises which was subject to search and seizure action are presumed to be belonging to the person searched from whose possession or control these documents are found and the contents of such documents are true. This is clearly spelt out in Sec. 132 (4A) r.w.s 292C of the Act. This presumption casted is rebuttable one. However, in the present case the Appellant was not able to rebut this presumption with facts and documentary evidences. The CIT(A) ha....
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.... In terms of sec 271(1)(c), the AO has to satisfy whether penalty proceedings were initiated or not during the course of assessment proceedings and AO is not required to record his satisfaction in a particular manner or reduce it to writing. h) The Hon'ble MP High Court in Steel In fots Vs CIT (2006) in 296 ITR 288 (MP) held that if assessee despite being afforded an opportunity to prove the transactions relied on by it for claiming benefits fails to substantiate the transactions, then a case for imposition of Penalty is made out. i) The Hon'ble Bombay High Court in K K Motwani HUF Vs AC1T (2016) In 2016- TIOL-2910-HC MUM- IT held that, direction of 'non inclusion of amount chargeable to tax' during reassessment cannot....