2026 (2) TMI 265

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...., 1961 ("the Act"). 2. Briefly the facts of the case are that the assessment in this case was completed u/s. 147 r.w.s. 144 of the Act, vide order dt. 13-03-2024, wherein an amount of Rs. 60,07,700/- was brought to tax u/s. 69A of the Act for the reason that the assessee has failed to explain the source of money deposited into its bank account. Separately, penalty proceedings u/s. 271(1)(c) of the Act were also initiated vide show cause notice dt. 13-03-2024. 3. In response to show cause, the assessee submitted that all the collections are made in cash from its Members and all the details were submitted during the assessment proceedings, including cash flow statement and no addition was made by the AO and the assessment was completed ....

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....d that the assessee has submitted comprehensive cash flow statements, Cash Book for the whole financial year containing 501 pages, audited Profit & Loss Account and Balance Sheet and three sample pass books. It was further submitted that the assessee has filed the said documentation before the AO and he has not considered the same and has levied the penalty. 6. The submissions so filed by the assessee were considered, but not found acceptable to the Ld.CIT(A). As per the Ld.CIT(A), there is no explanation offered by the assessee as to why the quantum order was passed ex-parte and the assessee has sought to respond to the proceedings as per its choice and it was further held by the Ld.CIT(A) that though penalty u/s. 271(1)(c) of the Act a....

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....pugned order has been passed confirming the levy of penalty. It was accordingly submitted that cash deposits were from Members of the assessee society and the assessee has submitted necessary documentation and the assessment was completed determining NIL tax demand and as a result, the assessee has not filed any appeal against the assessment order as tax liability was determined at NIL. As far as levy of penalty is concerned, the assessee still wishes to rely on the documentation so filed. Accordingly it was submitted that the assessee be granted necessary relief in this regard and the penalty so levied be directed to be deleted. 8. Per contra, the Ld.DR is heard, who has relied on the findings of the lower authorities. As far as the fir....

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....ordingly be set-aside. 10. We have heard the rival contentions and perused the material available on record. It is noted that an addition of Rs 60,07,700/- u/s. 69A of the Act has been made while passing the assessment order and the assessed income has been determined at Rs. 60,07,700/-, however, while computing the tax liability, no tax liability has been determined in the computation sheet attached with the assessment order which is clearly a mistake which has crept in the computation of tax liability and it is therefore not a case where no tax liability has been determined by the AO while passing the assessment order and therefore, as far as first contention so raised on behalf of the assessee that in absence of tax so sought to be ev....