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TMI Blog2022 (7) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... s declared nil turnover. AR at the time of hearing has not controverted the finding of the authorities below. In such a situation there remains no ambiguity to the fact that the assessee has shown bogus transactions of the business by generating the loss therein in order to set offs such loss against the taxable income. Thus we hold that, the assessee has furnished inaccurate particulars of income by claiming bogus business loss. It is not the case that the profit under the head business and profession was estimated by the revenue authorities as contended by the learned AR for the assessee. In fact the entire business loss claimed by the assessee was treated as bogus in the absence of any documentary evidence. The primary onus lies upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Vinit Moondra, CA Revenue by: Shri Sudhendu Das, Sr.DR ORDER PER WASEEM AHMED, ACCOUNANT MEMBER: This is assessee s appeal against the order of ld.CIT(A)-2, Ahmedabad dated 3.12.2018 vide which the ld.CIT(A) has confirmed imposition of penalty under section 271(1)(c) of the Income Tax Act, 1961 ( the Act for short) for the Asst.Year 2014-15. 2. Sole Ground raised by the assessee reads as under: 1. In his order u/s 143 3 , the books of accounts of the business of the assessee has been rejected by Ld. AO u/s 145(3) and business loss claimed of Rs. 72,63,457 has been disallowed. Infact in the letter of the assessee dated 15/12/2016, the assessee has not raised any objection for rejection of such books and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness loss of Rs.72,63,457.00 to be set off against the shortterm capital gain. The AO further initiated the penalty proceedings against the business loss claimed by the assessee on the charge that the assessee has furnished inaccurate particulars of income by claiming the bogus loss in order to set off against the short-term capital gain under the provisions of section 271(1)(c) of the Act which came to be confirmed for an amount of Rs. 22,44,408 being hundred percent of the amount of tax sought to be evaded. 4. On appeal before the learned CIT-A, the assessee contended that there cannot be any penalty in the event books are rejected and the profits is estimated. It was also submitted that the assessee itself has surrendered the income b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business activity was a loss of Rs.72,63,457.00as shown in the computation of income. Such loss was indeed set off against the short-term capital gain declared by the assessee under the provisions of section 50 of the Act which has resulted less taxable income in the hands of the assessee by the amount of such loss. Such loss was alleged to be bogus by the revenue and the same was also accepted by the assessee which eventually resulted in the higher amount of taxable income under the head short-term capital gain. 8. The controversy arises whether the assessee has furnished inaccurate particulars of income by adjusting the bogus business loss against the taxable short-term capital gain. In this regard, we note that the revenue authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the income as contended by the learned AR for the assessee. Thus we disagree with the argument advanced by the learned AR for the assessee that profit from the business was estimated. 10. The assessee cannot be absolved from the penalty merely on the reasoning that it has agreed for the addition/disallowance during the quantum proceedings. The Hon ble Supreme Court in the case of MAK Data Private Ltd versus CIT reported 38 Taxman.com 448 has held as under: 9. We are of the view that the surrender of income in this case is not voluntary in the sense that the offer of surrender was made in view of detection made by the AO in the search conducted in the sister concern of the assessee. In that situation, it cannot be said that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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