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TMI Blog2015 (11) TMI 1739X X X X Extracts X X X X X X X X Extracts X X X X ..... tions (A) or (B) of Explanation 1 to Section 271(1) must be fulfilled. It is one thing to say that the explanation about the dispute the Assessee had with his accountant, as a result of which the vouchers could not be produced, was not offered in the first instance before the AO and only subsequently before the CIT (A). It is another to state that the said explanation was either false or not bona fide. The Revenue has not been able to show that the explanation offered by the Assessee either lacked in bona fides or was false. The Court is satisfied that the CIT (A) was not in error in accepting the explanation offered by the Assessee and deleting the penalty. - Decided in favour of assessee. - ITA 393/2015 - - - Dated:- 17-11-2015 - S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt . The AO noted that the Assessee failed to furnish vouchers in support of the claim of the expenses. The AO then proceeded to hold that the Assessee had failed to produce the books of accounts and failed to file various relevant evidences such as vouchers and supportings which are necessary for the purpose of completion of assessment . It was concluded that the Assessee had furnished incorrect particulars thereby concealing his income for which notice for levy of penalty under Section 271(1)(c) was directed to be issued. 6. In the penalty order dated 22nd June 2011, the AO rejected the explanation of the Assessee that the failure to produce the vouchers was because they were unable to be located. Before the CIT (A) the Assessee po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The facts in Mak Data P. Ltd. v. Commissioner of Income Tax (supra) were that the Assessee originally filed a return for the AY 2004-05 enclosing the tax audit report and declaring income of ₹ 16,17,040/-. A survey proceeding was undertaken on December 16, 2003 under Section 133A of the Act in the case of a sister concern of the Assessee. Certain documents comprising the share application forms, bank statements, memorandum of association of companies, affidavits, copies of Income-tax returns and assessment orders and blank share transfer deeds duly signed were unearthed during the course of the survey proceedings. On that basis a show cause notice was issued to the Assessee seeking specific information regarding the documents foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filled, then the amount added in computing the total income shall be demed to represent the income in respect of which particulars of income concealed . 11. It is not the Revenue s case that the explanation offered by the Assessee herein is false. At best it could be stated that the Assessee failed to substantiate the explanation he offered. The explanation was that the vouchers were not available. There was a dispute that the Assessee had with his accountant who appears to have misplaced the relevant vouchers. The question is whether such explanation can be said to be bona fide. It is one thing to say that the explanation about the dispute the Assessee had with his accountant, as a result of which the vouchers could not be produced, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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