2026 (6) TMI 916

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....engaged in the business of execution of government contracts. The assessee filed his return of income and claimed deductions u/s. 80C and 80D of the Act. The return was processed u/s. 143(1) and the same has been accepted. Thereafter the return was selected for e-verification and due to the mismatch in the income from other sources shown in the ITR as well as the contractual receipts, notices were issued for verification. The assessee immediately filed the updated return u/s. 139(8A) of the Act and declared an additional income on account of interest received. The AO subsequently taken up the case for assessment u/s. 148 of the Act since the complete information was not provided by the assessee. The assessee had not responded to various not....

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....the assessee had not appeared before him. 4. As against the said order, the present appeal has been filed by the assessee before this Tribunal. 5. At the time of hearing, the Ld.AR submitted that the AO had erred in imposing penalty u/s. 270AAC of the Act on the sole ground that he has made the addition u/s. 68 of the Act and therefore the penalty has to be imposed u/s. 270AAC of the Act which is not correct and also not in accordance with the said provision. The Ld.AR further submitted that the imposition of penalty is not an automatic one since the word used in section 271AAC is that the AO "may" impose the penalty. The Ld.AR relying on the said word submitted that the legislature had used the word "may" in the said section and ther....

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....t the assessee had not furnished the details of the unsecured loans and therefore he has no other option except to make the addition u/s. 68 of the Act by treating the unsecured loans as unexplained cash credit u/s. 68 of the Act. Unfortunately, the assessment has been made u/s. 144 of the Act and therefore the addition made by the AO could be termed as a correct one. Even assuming that the assessee had participated in the assessment proceedings and filed his objections and documents, the non-consideration of the said objections as well as the documents by the AO for various reasons could not be termed as an unexplained cash credit u/s. 68 of the Act. At the best, it could be termed as the assessee was not able to satisfy the AO and it coul....