9911796707
TMI Blog2013 (12) TMI 1358X X X X Extracts X X X X X X X X Extracts X X X X ..... vied by the Assistant Commissioner of Income-tax, Circle-1, Kota." 2. Briefly the facts are that the assessee returned income of Rs. 2,01,733 from trading activities. During the course of assessment proceedings, the Assessing Officer found that the assessee has received two gifts of Rs. 1,00,000 each from Smt. Varsha Agarwal and Smt. Abha Agarwal in the name of his son and daughter respectively. Since there were cash deposits in the donors' account prior to the date of making the gift, the Assessing Officer doubted the creditworthiness thereof and treated the gifts as bogus and unexplained. Accordingly he made addition of Rs. 2,00,000 was to the returned income thereby making the assessment at an income of Rs. 4,85,920. The penalty proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be a case of furnishing of inaccurate particulars when reference is made to the return of income. It is a different matter that in quantum addition the authorities have taken a different view but penalty proceedings being quite separate and distinct, assessing authority, did not make any enquiry into the genuineness of the claim and proceeded to levy penalty arbitrarily on the findings contained in the assessment proceedings. The Assessing Officer has completely failed to rebut the facts laid before him in penalty proceedings nor did he consider the same afresh in the context of penalty. Even the Appellate Tribunal did not say that amount of gift so received by the assessee is his concealed income. The donors are existing and the ol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on is found recorded in the orders of the authorities below. There is also no finding by the authorities below as to whether any details supplied in the return are incorrect, erroneous or false. It, therefore, could not be a case of furnishing inaccurate particulars by the assessee for inviting penalty under section 271(1)(c) of the Act. That apart, the appellant had furnished income-tax particulars as well as declarations for making gifts from the donors along with their balance sheets furnished with the income-tax return. The assessing authority made no enquiry but jumped to the conclusion of imposition of penalty on the basis of quantum addition sustained by the Appellate Tribunal. Even the satisfaction as envisaged by section 271(1B) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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