9911796707
TMI Blog2012 (4) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter referred to as 'the Act']. 2 The brief facts of the case as per penalty order are as under:- The assessee has filed his return of income for the A.Y.2000-01 on 30-03-2001 by showing total income of Rs.l,46,860/-. The same was processed u/s.143(1) of the I.T. Act. As there was escapement of income reasons thereof were recorded and statutory notice u/s.148 of the I.T. Act was issued on 07-01-2005 ad served upon the assessee on 7-l-2005.The assessee filed letter dated 31-1-2005 stating to consider the return filed on 30-03-2001 as filed in response to the notice U/s.148 of the Act. The assessee is deriving income from planning drawing income and partnership firm. 2 During the course of assessment proceedings of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total 1,55,000 The A.O. had issued Notice u/s. 142 of the I T Act on 1-12-2005 served on 3-12-2005 to explain the above gifts, which is reproduced as under: It is brought to your m notice that the person from whom the gifts claimed to have received includes three donors, namely Shri Dharamshibhai, Smt Devaliben and Shri Purshottambhai D Savani. You have also claimed receipt of gift from them in A Y 2002-03, for winch the addition made by this office has got confirmed by the Ld CIT(A)-VI, Surat holding that It is against all human probabilities that the relatives kept on giving gifts when they were much poorer than the appellant land they gave gift to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee and has expired at the rips age and it is not possible to produce them. He has gifted away such a small amount to his son in contemplation of death and the gift to relative is now a days fully allowable as envisaged by Finance Act,2004. So kindly take a broad view of the matter and allow the same as justified and explained. 2 Diwaliben Lakhani: Sir, the assessee is enclosing the gift deed of Diwaliben. She is being the mother of assessee and of high rip age. She has given gift to her son. She is bed-ridden. The assessee has also received gift form the Diwaliben during the A.Y. 2002-03 and she could not be produced for reasons of illness- before your Honour on 20.6.2005 in respect of scrutiny case, of V for A.Y. 2002-03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificate attached. 4 The above submission of the assessee has been considered by the Assessing Officer carefully. The assessee repeated his arguments, which were forwarded at scrutiny proceedings of the assessee for A.Y. 2002-03. The genuineness of the above donors have already been examined at the time of assessment proceedings of A Y 2002-03 and at the time of sending remand report to the Id C I T (A)-VI, Surat. On verification of the case records, it is seen that the Assessing Officer after examining the above referred submission did not agree with that ad it was observed by him that during the course of assessment proceedings, in case of the assessee in A.Y.2002-03,it was found that these persons had made gifts to the assessee and du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -03-08 nor any explanation filed. It is presumed that the assessee is nothing to say in the matter. 7 In the light of the above facts and on going discussion, it is crystal clear that the assessee had filed inaccurate particulars of his income to the extent of ₹ 1,55,000/-and rendered himself liable for penalty u/s.271(1)(c) read with explanation 1 of the I.T. Act. 8 I am satisfied that the assessee has submitted inaccurate particulars of his income within the meaning of Section 271(1)(c) of the I.T. Act, I, therefore, levy a penalty u/s 271(1)(c) of the I.T. Act, 1961, the quantum of which works out as under:- Total income for which inaccurate Particulars were filed Rs.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of the AO and the CIT(A). We find that the assessee has claimed to have received five gifts totaling to ₹ 3,03,651/-. The assessee has disclosed all the material facts necessary for its assessment before the AO. The gifts were made by the close-relatives and therefore the element of natural love and affection could not be ruled out. The assessee has filed an explanation in this behalf and the same could not be said to be not bona fide. Merely because the assessee could not prove the credit-worthiness of the donors, it does not justify the imposition of the penalty under Section 271(l)(c) of the Act. The facts of the case may justify the additions of the gift amounts for taxation purpose in the assessment of the assessee, but a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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