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TMI Blog2019 (5) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... er the head unexplained cash credit vis- -vis short term capital gin, comes out, then penalty equivalent to that tax component would be charged from the assessee. In any away, it will not be ₹ 3,15,000/-. This exercise be carried out after hearing the assessee - Appeal of the assessee is partly allowed. - ITA No. 30/Ahd/2017 - - - Dated:- 30-4-2019 - Shri Rajpal Yadav, Judicial Member And Shri Pradip Kumar Kedia, Accountant Member For the Assessee : Shri B.R. Popat, AR For the Revenue : Shri Kamlesh Makwana, Sr.DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER : Assessee is in appeal before the Tribunal against order of the ld.CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(c) is initiated for furnishing inaccurate particulars of income and thereby concealing taxable income. (Disallowances of ₹ 10,19,405/-) 6. Subject to above and from the data made available, the total income of the assessee is computed as under:- I Income from Capital Gains as per return ₹ 13,20,378/-Less: STCG treated as bogus as per Para 5 above : ₹ 10,19,405/- ₹ 3,00,973/- II Income from profits and gains from business/ profession as per return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 5. In principle, the ld.counsel for the assessee did not dispute for visiting the assessee with penalty, but contended that as per sub-clause (iii) of section 271(1)(c) of the Act, penalty would be computed on the amount which is added to the income of the assessee. The assessee has already included a sum of ₹ 10,19,405/- under different head i.e. short term capital gain . The AO has only changed the head from short term capital to unexplained cash credit. Now, how this total amount on which the assessee has already paid taxes under the head short term capital gain can be considered for visiting the assessee with penalty. He submitted that if there is any variation in the taxes on this addition, only to that exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. A bare perusal of this clause would indicate that it provides a mechanism for computation of penalty. It contemplates that penalty will be computed either equivalent to the tax or three times of such taxes which sought to be evaded by an assessee by reason of concealment of income or furnishing of accurate particulars of income. In other words, the tax on the addition made to the income of an assessee are to be considered as sought to be evaded by reason of concealment or furnishing of inaccurate particulars, the penalty equivalent to that taxes or three time of that tax is to be computed against an assessee. In the present case, the assessee has offered short term capital gain on the amount of ₹ 10,19,405/-. The AO treated it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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