9911796707
TMI Blog2012 (9) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee did not prefer any appeal against addition in the quantum proceedings does not lead to automatic levy of concealment penalty, particularly when the belief nurtured by the assessee has not been shown to be mala fide - in favour of assessee. - ITA No.1202/Del/2012 - - - Dated:- 27-7-2012 - SHRI G.D. AGRAWAL AND SHRI A.D. JAIN, JJ. Assessee by : S/Shri Niraj Jain P.K. Mishra, CA s Revenue by : Mrs. Shumana, Sr. DR ORDER PER A.D. JAIN, J. This is an appeal filed by the assessee for Assessment Year 2005-06 against the order dated 30.12.2011 passed by the CIT(A)- XXXI, New Delhi, confirming levy of concealment penalty of Rs. 5,79,659/- on the assessee. 2. The facts as per the relevant orders are that the assessee individual is a director in Galgotia Publications (P) Ltd and has substantial interest in the company, as he is holding 67.40% of the shareholding. The company had reserves worth Rs. 82,16,753/-. As per the assessee s account in the company, he had a credit balance of Rs. 26,60,230/-. The Assessing Officer asked the assessee why the same be not added to the assessee s income as deemed dividend u/s 2 (22)(e). The assessee subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee from the company on account of advance in the capacity of employee of the company; that the company gives such advances to all its employees in the normal course of business; that the sum of Rs. 6 lac was received as security deposit against the property at Daryaganj which was given on rent to the company; that, so, no amount could be deemed to be dividend in terms of Section 2 (22)(e) of the IT Act; that the assessee did not know that any advance from the company, whether on account of advance in the capacity of an employee or otherwise is deemed to be income in the hands of the recipient; that the assessee was under the bona fide belief that only the income actually received or earned are taxed under the IT Act; that the books of account of the company were audited by a qualified CA and the factum of advance from the company being deemed to be income of the assessee was not brought to assessee s knowledge; that the assessee was under the bona fide belief that the dividend income is exempt under IT Act and whatever tax is to be paid on dividend income is to be paid by the company declaring/distributing dividend; that this contention was discernible from the fact that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d drawing salary from the company; that the sum of Rs. 4,50,000/- was received by the assessee from the company on account of advance in the capacity of employee of the company; that the company gives such advances to all its employees in the normal course of business; that the sum of Rs. 6 lac was received as security deposit against the property at Daryaganj which was given on rent to the company; that, so, no amount could be deemed to be dividend in terms of Section 2 (22)(e) of the IT Act; that the assessee did not know that any advance from the company, whether on account of advance in the capacity of an employee or otherwise is deemed to be income in the hands of the recipient; that the assessee was under the bona fide belief that only the income actually received or earned are taxed under the IT Act; that the books of account of the company were audited by a qualified CA and the factum of advance from the company being deemed to be income of the assessee was not brought to assessee s knowledge; that the assessee was under the bona fide belief that the dividend income is exempt under IT Act and whatever tax is to be paid on dividend income is to be paid by the company declari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, manifest. The belief of the assessee regarding both the components, i.e., the security deposit, as well as the advance received, has not been shown to be not bona fide. 9. A copy of letter dated 12.12.2007 filed by the assessee before the Assessing Officer, along with the copy of account of the assessee in the books of the company, has been placed at pages 5-7 of the assessee s paper book. We have been taken through this letter and the copy of account. Para 5 of the said letter reads as follows:- 5. Galgotia Publications Private Limited The complete copy of account of the assessee in respect of advances received from them in the books of Galgotia Publications Private Limited is enclosed herewith. It may be noted that out of the said sum Rs.695711/- was due from Galgotia Publications Private Limited on account of Galgotia Publications (Firm) and Rs.70210/- was due on account of Galgotia Correspondence as shown by GPPL under unsecured loans in their balance sheet. Further rent was also receivable from the company as on 01.04.2004. Further during the year Rs.6,00,000/- was received as security deposit against basement given on rent and Rs.4,50,000/- was received on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
