TaxTMI 
TaxTMI 
2012 (4) TMI 825
X X X X Extracts X X X X
X X X X Extracts X X X X
..../s. 271E of the Act. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the levy of penalty u/s. 271E of the Act for an amount of Rs.1 lac. 3. We have heard rival contentions and gone through facts and circumstances of the case. We find that the assessee is an individual engaged in the fertilizers business carrying on proprietary business under the name and style of Balaji Krishi Bhander at Jalpaiguri. The assessee has received trade advances of Rs.1 lac by account payee cheque dated 03.12.2005 from his brother Shri Ajay Kr. Agarwala (Narari), who is also fertilizer dealer. Assessee has given tender for supply of fertilizer and was very much confident and hopeful of getting the said tender and due to sc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ransactions were genuine cannot help the assessee." 4. Before us, Ld. Counsel for the assessee stated that the amount of advance of Rs.1 lac to assessee was by his own brother and repayment is made of the same advance. First, Ld. Counsel for the assessee stated that the credit is genuine and moreover, the transaction is between brothers i.e. assessee Shri Manoj Kr. Narari and Shri Ajay Agarwal. This fact he demonstrated before us from statement of facts filed before CIT(A). Even in grounds of appeal the assessee has raised the issue that the amount was received as advance for supply of goods from assessee's own brother having in the same line of business and because of failure to make the supply, the amount was returned in cash. Another a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....das Parekh (supra) has confirmed the findings of Tribunal as under: "18. As discussed above, the annexure attached to the penalty order goes to show that each of the family members of the assessee and each one of them was having sufficient opening balance as on April 1, 1990. After that we have to look into sources of the amounts received by the assessee on behalf of his family members as the same is an important factor. Handsome amount has been received on account of maturity of NSCs and then most of the amounts have been credited on account of gifts received from one family member to other and that was through journal entry except Rs. 32,000 which was gift by one family member to other. These amounts were not received by the assessee in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mentioned above, have not been challenged by the Revenue as genuineness of these transactions, viz., receipts of amount of NSCs, book entries relating to gift from one family member to other and credit entries in respect of salary and bonus and rent etc., the genuineness of investment in PPF, LIC premium made towards different types of taxes and different book entries, transaction relating to gifts are not doubted by the Revenue. Apart from it, the assessee has filed documents from pages 1 to 14 and pages 17 to 163 of the paper book in support of these entries and the learned Departmental representative was not able to point out that facts as narrated above and relied on by the assessee are in any manner not true. If these are the facts, th....