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TMI Blog2019 (10) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 is against that order of the Ld. Commissioner of Income Tax (Appeals), Gandhinagar wherein the Ld. first appellate authority has upheld the imposition of penalty imposed under section 271 (1) (c) of the Income Tax Act, 1961 (hereinafter called 'the Act'). Both the appeals pertain to assessment year 2006 - 07. Both the appeals were heard together and are being disposed of through this common order for the sake of convenience. 2.0 The brief facts of the case are that the assessee is a partnership firm engaged in the business as builders and developers. The return of income was filed declaring a gross total loss of Rs. 9,33,845/-. The return was initially processed section 143 (1) of the Act and case was later selected for scrutiny. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arties to prove the source of income. The Ld. first appellate authority proceeded to confirm this addition of Rs. 52,14,000/- and now the assessee is before this Tribunal again and has challenged the confirmation by the Ld. first appellate authority. 2.4 The assessing officer also proceeded to impose a penalty of Rs. 14,40,710/- under section 271 (1) (c) of the Act on the addition of Rs. 52,14,000/-. This penalty was also confirmed by the Ld. CIT (Appeals) and the assessee is before this Tribunal challenging the confirmation of the penalty also. 3.0 The Ld. authorised representative submitted that vide order sheet entry dated 29/11/2018, the bench had directed the Department to submit a remand report from the assessing officer by noting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir bookings and have invested/paid to the assessee for booking of the property of M/s Prerna Developers. The Ld. authorised representative further submitted that the statements recorded by the assessing officer were also forwarded to the Tribunal for perusual. It was further submitted that as per the remand report, out of 13 persons 9 persons had stated that they had cancelled their bookings and had received back their booking amounts and had submitted confirmations in this regard. It was further submitted that the remaining 3 persons had stated that the cancellation amounts were converted into unsecured loans and interest was received by them on the said amounts. It was further submitted that as per the remand report in the case of Smt. Sm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng officer, he had issued summons/notices under section 133 (6) of the Act requiring response from these 14 parties but somehow none of them responded to the query of the assessing officer. The assessing officer, thereafter, did not carry out any further investigation and again made the same addition. The appeal to the Ld. Commissioner of Income Tax (Appeals) also did not bring any relief to the assessee. Thereafter, after the matter having reached the Tribunal again, on an earlier date, the bench, vide order sheet entry dated 29/11/2018 noted that the assessing officer should have investigated the issue with more vigour than by simply issuing notice under section 133 (6) of the Act. The bench called for a remand report from the assessing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the remaining 3 persons have stated that the cancellation amounts were converted into unsecured loans and interest was received by them on the said amounts. It has also been mentioned in the remand report that in the case of one Smt Smitaben Mahendra Kumar Patel she was allotted shop No. 3 against her booking. Thus a perusal of the remand report submitted by the assessing officer in this regard clinches the issue in favour of the assessee in as much as out of the 14 persons, 13 persons have duly accepted and confirmed the transactions. The assessing officer has also examined their creditworthiness and has not drawn any negative inference in this regard. Only one out of the 14 persons, one Sh. Sanjay Patel was not available for recor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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