2025 (8) TMI 1110

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.... has grossly erred in confirming the penalty imposed under Section 272A(1)(d) of the Income Tax Act, 1961. Appellant prays that since there was no default in compliance of any of the notices issued during the assessment proceedings, the penalty confirmed deserves to be deleted. as there was no wilful or intentional non-compliance on the part of the assessee. Hence the order passed is bad in law and void ab initio deserves to be quashed. 2. On the facts and circumstances of the case and in law the order passed u/s 250 of the Act, confirming the penalty imposed, was passed without properly appreciating the detailed submissions and the documentary evidence furnished by the assessee. Appellant prays that such act being in violation of ....

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....inst the levy of penalty, the assessee filed appeal before the CIT(A). 4. Aggrieved from the order of AO, levy penalty preferred an appeal, assessee before the ld. CIT(A). Apropos to the grounds so raised the relevant finding of the ld. CIT(A) is reiterated here in below:- "6. I have carefully considered the facts of the case, penalty order and written submissions of the appellant. 7. Ground no. 1 related to imposition of penalty u/s 272A(1) (d) has been contested. In his reply appellant has stated that it is quite clear the assessee has duly submitted his response in response to each notice well on time except for one notice Issued u/s 142(1) date 28.02.2023. As already mentioned above and during the submission to vari....

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....ng the assessment proceedings, statutory notice(s) u/s 142(1) of the Act dated 10.02.2023 was issued to the assessee but the assessee did not make compliance to the same within prescribed period. 9. On perusal of the assessment order, it is mentioned by the AO that during the course of assessment proceedings, the assessee was asked regarding the source of funds used to purchase the said crypto currency vide notice u/s 143(2) dated 18.08.2022, notice u/s 142(1) dated 10.02.2023 and show cause notice dated 28.02.2023. The assessee made compliance vide submissions dated 22.08.2022, 02.03.2023, 03.03.2023. However, the assessee has failed in submitting substantiating documentary evidence regarding source of funds used make the above me....

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....ing of statutory notices. It is only stated that questionnaire containing approx 20 points. Although, it is pertinent to mention here that firstly reply filed during the course of assessment proceedings could not substantiate the purchase of crypto currency by the assessee. Secondly, DRP has also rejected all the grounds raised by the assessee in quantum objection filed before the DRP. Form the above facts it is clear that the assessee did not file any cogent and tenable reply supported by documentary evidences to prove the source of investment made by him in crypto currency, during the course of assessment as well as DRP proceedings. 11. In view of above, it is concluded that the AO was justified in levying penalty for the non-com....