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TMI Blog2017 (9) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to as "the Act"). 2. Briefly stated, it was noticed by Assessing Officer (AO) in the course of scrutiny assessment for the AY 2008-09 that assessee has obtained unsecured loan of Rs. 43 lakhs from one M/s.Sudarshan Enterprise. The AO on verification of PAN data on computer found that the PAN of the depositor M/s.Sudarshan Enterprise mentioned in the confirmation file does not pertain to it. Therefore to verify the genuineness of the transactions, a notice under s.133(6) of the Act was issued to M/s.Sudarshan Enterprise. In response thereof, M/s.Sudarshan Enterprise denied having made any transaction with the assessee as claimed. Show-cause notice was accordingly issued to the assessee for explanation on the enquiries conducted. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings u/s 271(1)(c) were initiated by issuing notice u/s 274 r.w.s. 271(1)(c)of the Act. 4.1 The appellant filed appeal before the CIT(A) against the initiation of penalty u/s 271(1)(c) which was dismissed by CIT(A)-VI, Ahmedabad vide order dtd. 16-02-2012 stating that no appeal lies against the initiation of penalty. 4.2 On disposal of the appeal of the appellant as mentioned above by CIT(A), the AO imposed penalty under consideration vide order dated 20-03-2014. The appellant objected against the imposition of penalty on the following grounds : i) The penalty imposed by the AO is barred by limitation of time period, as notice for imposition of penalty was issued on 28-10-2010, whereas penalty was imposed on 20-03-2014. The conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al was justified in deleting penalty u/s 271(1)(c) levied by the AO. Respectfully following the judgement of the Hon'ble High Court of Gujarat, Ahmedabad, this contention of appeal of the appellant is allowed as facts of the case are identical to the facts of the case decided by the jurisdictional High Court. iii) The next contention of the appellant is that the appellant has agreed for the additions during the course of assessment proceedings with specific request to buy peace of mind and avoid further litigation. The appellant relied upon the case of Sir Shadi Lal Sugar & General Mills Ltd. (168 ITR 705) (SC) in which it has been held that there may be 101 reasons for agreeing to additions but that does not follow the conclusion th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice had to finally concede the income when no shelter was available in sight to the assessee with a view to escape the clutches of penalty. The Ld.DR submitted that the disclosure made was not voluntarily at all. The request of the assessee not to impose penalty was not accepted by the AO at all. The Ld.DR referred to the decision of the Hon'ble Supreme Court in the case of MAK Data Pvt Ltd. vs. CIT 358 ITR 593(SC) and submitted that the aforesaid decision squarely governs the issue. 7. We have carefully perused the orders of the authorities below as well as the submissions made on behalf of the revenue. We observe that the additions have been made under s.68 of the Act as purported lender M/s.Sudarshan Enterprise denied having been lent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings after detection of untruthfulness of the version of the assessee. In these circumstances, the view adopted by the CIT(A) of favourable treatment to such assessee cannot be endorsed. We also notice that the penalty has been imposed for concealment of particulars of income which is consistent with the facts of the case. The assessee has not expressed its handicap anywhere before the lower authorities on the alleged vagueness of notice issued under s.274 r.w.s.271(1)(c) which prevented him in his response in any manner. The onus which lays upon the assessee to rebut the presumption of concealment under Explanation- 1 to s.271(1)(c) has not been discharged. Under the circumstances, the order of the CIT(A) is requires to be reversed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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