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TMI Blog2022 (8) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Income Tax (Appeals), Ahmedabad-5 in Appeal no. CIT(A)-5/ITO. Wd. 5(3)(1)/176/2016-17 vide order dated 05/02/2018 passed for the assessment year 2009-10. 2. The assessee has taken the following grounds of appeal:- 1. The learned CIT(A) erred in confirming the penalty of Rs. 4,16,455/- under section 271(1)(C) of the Income Tax Act, 1961, such penalty is requested to be deleted. Your appellant prays for leave to add, to alter and / or to amend the above ground before the final hearing of the appeal. Total tax effect Rs. 4,16,455/- 3. The brief facts of the case are that the assessee in the present case is an individual and is engaged in the business of share trading. The AO in the present case received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80/- and committed default within the meaning of section 271 (1)(c) of the Act for which penalty is leviable. The minimum penalty leviable being 100% of tax sought to be evaded comes to Rs. 4,16,455/- and maximum penalty leviable being 300% of tax sought to be evaded comes to Rs, 12,49,365/-. I, therefore, levy minimum penalty of Rs,4,16,455/-, u/s. 271(l)(c) of the Act. 3.1 Thereafter, in appeal, Ld. CIT(A) also confirmed the penalty u/s 271(1)(c) of the Act imposed by Ld. Assessing Officer with the following observations: 6.6 Despite giving ample opportunities as mentioned in para 5 above, the appellant had not furnished any submission or documentary evidence in support of his claim. It clearly shows that the appellant had noth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lief has been granted to the assessee in quantum proceedings: 15.2 Coming to the facts of the present case, admittedly client codes were modified of the assessee as per the information received from the investigation wing. However, the first question that arises whether such client codes were modified at the instance of the assessee or there was some punching error at the end of the share broker. It is because the stock exchange permits the share broker to rectify the mistakes occurred while punching the data. If that be so, then there cannot be any fault which can be attributed to the assessee for the mistakes committed by the share broker. 15.3 Furthermore, the client code modifications give rise to the doubt/ suspicion which re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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