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TMI Blog2015 (10) TMI 2750X X X X Extracts X X X X X X X X Extracts X X X X ..... ence, on conspectus of the matter, we are of the view that the addition of cash credits confirmed by the ITAT, in the facts and circumstances of the instant case, would not necessitate levy of penalty under section 271(1)(c) of the Act, as the same, in our view, cannot be considered to be concealment of particulars of income. Thus direct the AO to cancel the penalty levied - Decided in favour of assessee. - I.T.A. No.2234/Mum/2013 (Assessment Year: 2004-05) - - - Dated:- 14-10-2015 - S/Shri B.R.Baskaran And Amarjit Singh, JJ. Appellant by Shri S C Tiwari Revenue by Shri A Ramchandra ORDER B R Baskaran, The assessee has filed this appeal challenging the order dated 4.12.2012 passed by the ld.CIT(A)-20, Mumbai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alings and further details of donation given by the assessee along with family members to the tune of ₹ 3.86 crores for construction of Nazani Baug . The ld. AR submitted that both the documents sufficiently prove the creditworthiness of the of the creditor. However, the said documents were not found to be adequate by the Tribunal and hence the addition was sustained by it. Accordingly, the Ld A.R submitted that the assessment of cash credit without accepting the evidences furnished by the assessee would not automatically give rise to penalty. The ld. AR submitted that the assessee has furnished all the materials available with it and also offered explanations and they have not been found to be false. Accordingly, by taking support o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sustained by it. 6. It is well settled proposition that addition made during the course of assessment proceedings would not automatically give rise to penalty under section 271(1)(c) of the Act. During the course of penalty proceedings, the AO is required to examine the entire issue afresh and for that purpose the deliberations made in the assessment order can be taken as a guide. In the instant case, the penalty has been levied u/s 68 of the Act in respect of loan taken by the assessee, since the evidences furnished by the assessee to prove the creditworthiness of the creditor was found to be inadequate. It is also pertinent to note that the addition prescribed u/s 68 of the Act is a legal fiction and the same need not necessarily as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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