9911796707
TMI Blog2014 (12) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... ts nature and source then this amount will be treated as income of the assessee - the assessee has not furnished any explanation regarding this cash credit, therefore, AO rightly treated it as income of the assessee - assessee has failed to offer any explanation regarding this deposit. Therefore, explanation I to Section 271(1)(c) comes into play - the provisions of Section 271(1)(c) not only covers the cases in which assessee has concealed the income or has furnished inaccurate particulars of income - even without there being anything to indicate noteworthy deeming fiction for concealment of income comes to play and it covers the cases where the assessee does not offer any explanation for any material concerning the computation of total in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Manish Kumar on 01.06.2001, an amount of ₹ 10,01,500/- was deposited in cash and on the same date a cheque of equivalent amount was issued in favour of the assessee. The A.O. held that the cash deposited in the bank account of M/s. Manohar Lal Manish Kumar must be belonging to the assessee and therefore, he made an addition u/s 68 of the Act as unexplained deposit. The assessee preferred appeal before Ld. CIT(A). However, Ld. CIT(A) upheld the addition made by the A.O. Before Ld. CIT(A) also, the assessee or its A.R. did not attend the proceedings. In view of the addition A.O. initiated imposition of penalty u/s. 271(1)(c) of the Act. The A.O. did not accept the argument of the assessee that the addition itself cannot lead to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ahabad High Court has held that were the appellant does not offer any explanation regarding the source of deposit either in the assessment proceedings or in the penalty proceedings, penalty is leviable. The appellant had deliberately furnished' inaccurate particulars of its income with a view to concealment of income. The explanation of the appellant is not bonafide. In view thereof penalty of ₹ 3,09,460/- imposed u/s 271(I)(c), is confirmed. The ground of appeal is thus ruled against the appellant. 3. Aggrieved, the assessee is in appeal before us. 4. At the outset, Ld. A.R. submitted that the order passed by A.O. and Ld. CIT(A) are both ex-parte orders as there was nil demand, the assessee could not present the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer or the Commissioner (Appeals) or the CIT in the course of any proceedings under this Act, is satisfied that any person (a) and (b)******** (c) has concealed the particulars of his income or furnished inaccurate particulars of such income. He may direct that such person shall pay by way of penalty. (i) and (Income-tax Officer,)******** (iii) in the cases referred to in Clause (c) or Clause (d), in addition to tax, if any, payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or fringe benefit the furnishing of inaccurate particulars of such income or fringe benefits: Explanation 1.- Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fiction, by way of Explanation I to section 271 (1)( c) postulates two situations; (a) first whether in respect of any facts material to the computation of the total income under the provisions of the Act, the assessee fails to offer an explanation or the explanation offered by the assessee is found to be false by the Assessing Officer or Learned CIT(Appeals); and, (b) where in respect of any fact, material to the computation of total income under the provisions of the Act, the assessee is not able to substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see claimed to have received share application money from one person which the Director (Inv.) had found to be engaged in the business of accommodation entries and assessee was found to be the beneficiary of the same. On the basis of investigation report, the case of the assessee was reopened. However, despite repeated opportunities provided by A.O. and Ld. CIT(A) the assessee did not present itself which itself proves that the assessee had no answer to the query of the revenue authorities. Had there been any genuine problem in representing the case, the assessee would have filed evidence to this effect. Section 68 clearly states that if a credit appearing in the books of account of the assessee is not explained regarding its nature and sou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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