9911796707
TMI Blog2016 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-I, Nashik dated 19-12-2013 for the assessment year 2000-01 confirming the levy of penalty u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the Act ). 2. The brief facts of the case as emanating from records are: The assessee is HUF and is a partner in firms M/s. Agrawal Brothers, Chalisgaon, G.M. Oil Mill, Chalisgaon and Agrawal Industrial Complex, Chalisgaon. A search and seizure action u/s. 132 (1) of the Act was carried out in the case of Agrawal Group on 03-11-2004. In response to notice issued u/s. 153A of the Act, the assessee declared income of ₹ 3,07,896/- and agricultural income of ₹ 32,618/-. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -01. The aforesaid loans taken by the assessee were repaid in the subsequent years. The assessee had filed confirmations from the persons from whom the assessee had taken the loan. The Commissioner of Income Tax (Appeals) had recorded this fact in his order. The ld. AR of the assessee referred to affidavits of various persons from whom the assessee had allegedly taken loan at pages 22 to 32 of the paper book. The authorities below have erred in disbelieving the affidavits as the assessee could not produce the persons before the Assessing Officer. The assessee had furnished ledger extracts of the creditors and affidavits of all the creditors before the Commissioner of Income Tax (Appeals). The ld. AR contended that the assessee has discharge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the affidavits filed by the assessee from the alleged creditors are nothing but self serving documents. The affidavits are defective. Neither they are notarized nor they are sworn before the Magistrate. The ld. DR pointed that in the affidavits complete address of the creditors is not given. The ld. DR further pointed that all the affidavits were executed on the same date and all the stamp papers are consecutively numbered. This itself shows that the affidavits were fabricated and no sanctity can be attached to the same. The assessee has not been able to produce even single creditor either before the Assessing Officer or the Commissioner of Income Tax (Appeals). The ld. DR prayed for dismissing the appeal of the assessee and confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es below in support of his contentions. The documents placed on record cannot be considered as confirmations for the reasons mentioned above. The Commissioner of Income Tax (Appeals) has upheld the order levy of penalty by observing as under : 7.1 After carefully going through the facts of the case, it is clearly proved that the appellant could not prove the genuineness of the cash credits. The appellant did riot produce creditors before the AO either during the course of assessment proceedings or the appellate proceedings. The affidavits filed by the appellant during the appellate proceedings were nothing but self serving documents which were not backed by any other documentary evidences. The appellant has failed to discharge his o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r rejected the claim of assessee as the parties could not respond to the verification exercise carried out by the Assessing Officer due to change in address. One of the creditors appeared before Assessing Officer and confirmed the work carried out for the assessee. There was discrepancy in the quantum of work admitted and the corresponding payment. Assessing Officer made addition u/s. 68 and also levied penalty. The Tribunal deleted the penalty on the ground that although there was failure on the part of assessee to explain the balances satisfactorily but there is no positive material to say that the credit balances were false. In the instant case the assessee has not been able to establish the identity of the creditors itself. The confirma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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