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TMI Blog2019 (1) TMI 1875X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the assessee along with other concerns/business associates - HELD THAT:- It is recorded by the A.O. that during the course of search evidences related to payment in cash for material purchase was found and on examination of books of accounts, it was found that these amounts were not accounted for by the assessee. It is also stated by the assessing officer that through this letter Shri Deepak Kalra stated that these payments were made out of income from undisclosed sources and admitted these amounts as additional income from undisclosed sources. This fact is not rebutted by the assessee by placing any contrary material on record. Since there is no ambiguity under the law and the assessee has not placed any material which could suggest that these payments in cash for material purchases was recorded in books of accounts before search was conducted. The grounds raised in this appeal are dismissed and order of the Ld. CIT(A) is affirmed. - ITA Nos.78 to 80, 85 to 97/Ind/2017 - - - Dated:- 10-1-2019 - SHRI KUL BHARAT AND SHRI MANISH BORAD, JJ. Appellant by: Shri S.S. Sheetal, A.R. Respondent by: Shri K.G. Goyal, D.R. ORDER This bunch of 16 appeals by four d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Singh Bhatia in ITA No.9 of 2018 (M.P.) dated 9.5.2018. Ld. Counsel for the assessee submitted that there is no specific charge by the assessing officer. Further, it is contended that the Ld. CIT(A) did not consider the submissions of the assessee. He submitted that the A.O. ought to have made specific charge, moreover the notice u/s 271(1)(c) of the Act dated 24.3.2015 is ex-facie defective and contrary to the judgement of the Hon'ble jurisdictional High Court in the case of PCIT-I Vs. Kulwant Singh Bhatia (supra). 4. Per contra, Ld. D.R. opposed the submissions of the assessee and submitted that in pursuance to the notice, the assessee participated into the proceedings and did not raise any objection before the A.O. about the legality of the notice dated 24.3.2015. Therefore, he submitted that assessee cannot take shelter under the judgement of the Hon'ble jurisdictional High Court, which was on the different set of facts. 5. We have heard the rival submissions, perused the materials available on records and gone through the orders of the authorities below. We find that the Ld. CIT(A) has decided the issue in paras 3.1 to 3.6.2 of the impugned order, which is reprod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied u/s 271AAB(1)(c) of the Income Tax Act, 1961 by the Assistant Commissioner of Income Tax (Central)-I, Indore. 2. The appellate order being not based on facts, and in law, is illegal and wrong. 3. The appellant company craves leave to add/alter/amend the above Grounds of Appeal, if and when, necessity or occasion arises. 12. Briefly stated facts are that a search seizure operation was carried out in the business as well as residential premises of the appellant group, Indore including the assessee along with other concerns/business associates on 21.9.2012. Subsequently, a notice u/s 153A of the Income Tax Act, 1961 (hereinafter called as the Act ) was issued. In response thereto, the assessee filed return of income. The A.O. framed assessment u/s 153A r.w.s. 143(3) of the Act vide order dated 24.3.2015. While framing the assessment, the A.O. also initiated penalty proceedings u/s 271(1)(c) of the Act in the case of the assessee for the assessment years 2010-11 2011-12 and penalty u/s 271AAB of the Act for the assessment year 2012-13. Subsequently, the A.O. imposed a penalty u/s 271AAB of the Act in respect of appeal under consideration vide order dated 23.9.2015 the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch in a statement under sub-section 4 of section 132 of the Act does not admit the undisclosed income and on or before the specified date declared such income in the return of income furnished for the specified previous year and pays the taxes together with interest, if any in respect of the undisclosed income. Another situation is stipulated where the assessee s case is not covered by the aforesaid conditions. The rate of penalty would be 60%. In the present case, assessing officer has invoked the provisions of section 271AAB(1)(c) of the Act on the basis that the addition pertains to specified previous year and the assessee could not specify and substantiate the manner in which the undisclosed income has been derived. The Ld. CIT(A) decided the issue in para 3.1 to 3.7 of his order which is reproduced as under: 3.1 I have gone through the assessment order and the appellant s contentions. The crux of the submissions made before the Assessing Officer was that since the additional income was offered in the return filed in response to notice issued u/s 153A and no separate addition had been made, no penalty is leviable. The Assessing Officer held that the assessee had offered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or other documents maintained in the normal course relating to the specified previous year which is found to be false and would not have been found to be so had the search not been conducted. 3.5 In view of the additional income admitted u/s 132(4) and offered by the appellant in the return of income filed u/s 153A for A.Y. 2012-13 it is clear that there was undisclosed income which has been disclosed on account of various payments made in cash for material purchase as well as for labour/contractor payments of ₹ 5,00,000/-. That there was undisclosed income of ₹ 5,00,000/- which could not be explained on account of which additional income has been admitted, such income . 3.0 2012-13 5,00,000/- out of expenses claimed in Trading P L A/c The assessee company has made cash payments for material purchase and labour/contractors payments which is unavoidable in the trade as that of the assessee company but considering the provisions of section 40A(3) as applicable in this relevant assessment year, and to avoid any further litigation in this matter, the assessee company wish to surrender this amount as its undisclosed income for A.Y. 2012-13. 3.1 Tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Income Tax Act, 1961 by the Assistant Commissioner of Income Tax (Central)-I, Indore. 2. The appellate order being not based on facts, and in law, is illegal and wrong. 3. The appellant craves leave to add/alter/amend the above Grounds of Appeal, if and when, necessity or occasion arises. 18. At the outset, Ld. Counsel for the assessee submitted that the penalty so initiated is vitiated due to defective notice issued by the A.O. He submitted that the penalty order to be quashed on this ground alone in view of the Hon'ble jurisdictional High Court decision in the case of Principal CIT Vs. Kulwant Singh Bhatia in ITA No.9 of 2018. 19. Ld. D.R. opposed the submissions of the Ld. Counsel for the assessee. 20. We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. We find that the notices issued for levy of penalty dated 24.3.2015 do not contain the specific charges. The notices dated 24.3.2015 for the A.Y. 2007-08, is reproduced as under for the sake of clarity: 21. The revenue has not brought any contrary material suggesting that a valid notice was served on the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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