2023 (6) TMI 390

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....2015 declaring total income at Rs. 19,38,950/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 22.12.2016 and the total income was determined at Rs. 24,93,675/- inter alia by making addition of Rs. 5,54,725/- being interest on interest free loans and advances aggregating to Rs. 11,09,45,000/-. On such addition, AO vide penalty order passed u/s 271(1)(c) of the Act dated 19.05.2017 levied penalty of Rs. 1,71,411/-. 4. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 29.01.2019 in Appeal No.10367/18-19 dismissed the appeal of the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal before the Tribunal and has raised th....

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....ng levying penalty of Rs. 1,71,411/- u/s 271 (1)(c) without appreciating that the Ld. A.O. levied penalty without establishing that the explanation furnished by the appellant was false. 6. That on the facts and circumstances of the case and in law the Hon'ble Commissioner of Income Tax (Appeals)-25, New Delhi, erred in upholding penalty order pervasive to binding decisions interpreting provision explained by courts. 7. That on the facts and circumstances of the case and in law the Hon'ble Commissioner of Income Tax (Appeals)-25, New Delhi, erred in not appreciating the facts of the case. 8. That without prejudice and in the alternative the order passed by the Ld. Assessing Officer and confirmed by Hon'ble Commissioner of I....

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....rd the rival submissions and perused the material available on record. The issue in the present ground is with respect to the levy of penalty u/s 271(1)(c) of the Act. It is an undisputed fact that during the year under consideration, assessee had taken aggregate loans and advances from various parties (listed at page 2 of the assessment order). On the aggregate of such loans of Rs. 11,09,45,000/- and in absence of details to the satisfaction of AO, AO calculated the income @ 0.5% of the aggregate loans and advances and determined the income to be taxed under "income from other source" at Rs. 5,54,725/-. On such additions, AO has levied the penalty u/s 271(1)(c) of the Act. The aforesaid fact clearly reveals that the addition has been made ....