2026 (5) TMI 1708

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....ed u/s 271AAC(1) amounting to Rs. 3,90,703/- is unjustified, arbitrary and without cogent basis. 2. For that Ld. CIT(A) erred in confirming the penalty on the alleged addition of Rs. 65,11,720/- u/s 69A in the Bank Account without appreciating that in the quantum appeal order Ld. CIT(A), NFAC vide his order dated 06.03.2024 Appeal No. CIT(A), Ranchi/10884/2019-20, it has been held that this is a trading account and the total credit is below the limit prescribed u/s 44AD. As such the Ld. AO was directed to compute income (net of expenses) @8% of the total credits in the current account, excluding Rs. 1,50,000/- being inter bank account transfer. As such the provisions of section 271AAC(1) in respect of deposits u/s 69A were not appl....

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....he assessee neither filed return of income nor did offer any explanation about the nature, source and creditworthiness of the same. Penalty proceedings under Section 271AAC of the Act was also initiated by the Assessing Officer and notice under Section 271AAC of the Act was issued on 23/07/2019 which was duly served on the assessee vide speed post. The assessee again did not comply with the penalty notice issued as above. The Assessing Officer, therefore, imposed penalty of Rs. 3,90,703/- under Section 271AAC of the Act. 3. Aggrieved by the penalty order, the assessee filed appeal before the ld. CIT(A). The ld. CIT(A) vide the impugned order, confirmed the order of the Assessing Officer passed under Section 271AAC(1) of the Act dated 27/....