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2013 (1) TMI 574 - DELHI HIGH COURTPenalty u/s 271(1)(c) - penalty set aside by Tribunal - survey under Section 133A - Unaccounted share capital receipt - assessee surrendered the income under "income from other sources" - Held that:- Revenue is right in contending that there was absolutely no explanation from the assessee in respect of the amount of Rs.40,74,000/- when the AO called upon the assessee to produce the evidence as to the nature and source of the amount received as share capital, the creditworthiness of the applicants and the genuineness of the transactions the assessee simply folded up and surrendered a sum of Rs.56.49 lacs in its hands initially, which was later scaled down to Rs.40,74,000/-. The assessee merely stated that with a view to avoid litigation and buy peace it surrendered the income under the head “income from other sources”. In the absence of any explanation in respect of the surrendered income, the first part of clause (A) of Explanation 1 is attracted. It cannot be denied that the nature and source of the amount surrendered are facts material to the computation of the total income of the assessee. The Revenue is entitled to know the same and if the nature and source of the amount are not explained, it is entitled to draw the inference that the amount represents the assessee's taxable income. It is the assessee who has received the monies & in the absence of any explanation is statutorily considered as amounting to concealment of income - the Tribunal fell into error in setting aside the penalty imposed by the AO and upheld by the CIT(Appeals) - against the assessee
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