2026 (9) TMI 498

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....ursuance to assessment order dated 27.12.2019 u/s 153A of the Act for A.Y. 2016-17. 2. Brief facts of the case are that the assessment u/s 153A of the Act was completed vide order dated 27.12.2019. The assessee had made concealment of income of Rs. 16,00,000/-, hence penalty proceeding u/s 271(1)(c) of the Act, 1961 was initiated separately in pursuance to assessment order dated 27.12.2019. Separate notice was issued on 27.12.2019. Notice u/s 274 r.w.s. 271(1)(c) dated 25.02.2024 was issued. The assessee did not file submissions. On completion of proceedings, Ld. AO vide order dated 31.03.2024 imposed penalty of Rs. 1,20,000/- u/s 271(1)(c) of the Act. 2.1 Against penalty order dated 31.03.2024 of ld. AO, the assessee filed appeal bef....

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....posable, even though the genuineness of gift was not accepted and the amount of gift was added to the total income of assessee u/s 68 of the Act. Reliance was placed on order dated 16.03.2012 in ITA No. 1236/Mum/2006 titled as Shri Chandrkant J Shah vs. ITO. 5. Ld. Departmental Representative submitted that the appellant/assessee had not filed appeal before ITAT against assessment order confirmed by ld. CIT(A). 6. From examination of record in light of the aforesaid rival contentions, it is crystal clear that Ld. CIT(A) vide order dated 25.03.2024 confirmed the penalty order dated 31.03.2024, imposing a penalty of Rs. 1,20,000/- u/s 271(1)(c) of the Act for A.Y. 2016-17 on account of concealed income of Rs. 4 lacs. The confirmation of....

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....on of Rs. 11,25,000/- made by the AO on account of bogus gifts, however, has been restricted initially by the learned CIT(Appeals) to Rs. 6,25,000/- and finally by the Tribunal to Rs. 3,50,000/- in the quantum proceedings accepting the remaining amount of gifts as genuine. Moreover, even if it has been alleged by the AO that the gifts were arranged by the assessee by paying premium amount, there is nothing brought on record to support and substantiate the said allegation. There is also nothing brought on record to show that the cash deposited by the donors in their accounts prior to giving gifts to the assessee was actually belonging to the assessee and the same was given by the assessee to the said donors for returning the same in the form....