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TMI Blog2015 (7) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... passed u/s.143(3) r.w.s. 254 dated 15.12.2006 were that in the first round of proceedings an order u/s.144 r.w.s. 147 was passed on 7th March, 2002 wherein an addition of Rs. 1,91,96,156/- was made u/s.68 of IT Act. The credits were in the nature of loans/deposits. The said addition was confirmed by learned CIT(A) in the first round vide an order dated 30th September, 2004. When the matter was carried before the Tribunal, it was restored back to the file of the AO vide order dated 13th of October, 2005. In consequence thereupon, the AO has passed a fresh assessment order as referred above, relevant paragraph is reproduced below: "From the above concerns and in respect of his personal account, assessee submitted separate balance sheet with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant. It is claimed by him that ail other deposits are carried forward from the last year; but it is to be mentioned that the learned Authorised Representative of the Appellant at this stage also, before me, has not filed any confirmations and other evidences in support to prove the genuineness of creditors. As regards fresh credits during the year also, the Appellant is not in a position to file confirmations and supporting evidence to prove the genuineness of the credits ......... 5.3 (iii) Keeping in view all these facts and discussion made as above, I hold that the addition to the extent of Rs. 7,25,850/- being the unexplained cash credit of the current year can only be sustained. Therefore, the addition to the extent of Rs. 7,25,850/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice under section 271(l)(c) of the Act asking the appellant why the penalty should not be levied. In this connection, the appellant vide letter dated 19/03/2010 submitted the explanation for non-levy oj the penalty. However, the learned Assessing Officer did not appreciate the facts of the case and levied the minimum penalty of Rs. 3,78,274/- under section 271(l)(c) of the Act. Hence this appeal." 6. Learned CIT(A) was of the opinion that the Assessee has not filed confirmation letter of those creditors. Rather during the course of assessment proceedings or during the course of appellate proceedings, the Assessee has failed to furnish the genuineness of the cash creditors. He has concluded that in a situation when the Assessee has not esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cially, when the Assessee has not furnished the basic information such as copy of account, confirmation letter and identity of those cash creditors. 10. Having heard the submission of both the sides, we are of the view that this case has a chequered past history. A huge addition u/s.68 was made in the past but when the Assessee was provided an another opportunity of hearing then he has successfully placed evidences before learned CIT(A) in respect of major portion of the loans taken but remained unsuccessful in respect of the small amount of Rs. 7,25,850/-. Even that could have been explained by the AO if the matter was decided in the year when for the first time a question was raised in respect of the deposits introduced by the Assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e where there was no circumstance to lead to a reasonable and positive inference that the explanation that cash credits were arranged as temporary loans was false. The facts and circumstances were equally consistent with the hypothesis that they could have been sundry loans in small amounts obtained from different parties. Therefore, the imposition of penalty was not justified. " 11. From the side of the Appellant, two more decisions have also been cited of Respected Co-ordinate Benches as follows: "1. M/s. Dishman Pharmaceuticals & Chemicals Ltd. Vs. ACIT (OSD), Range-1, Ahmedabad in IT A No.ll38/Ahd/2011 order dated 20.02.2015 (Ahd Tribunal) 2. Pragnesh Trading Co. Vs. ITO S.K. Ward-1, Himatnagar in ITA No.2173/Ahd/2010 order dated26.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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