9911796707
TMI Blog2023 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... furnishing of inaccurate particulars - HELD THAT:- We find force in the argument of the ld. Counsel. Against the quantum addition, once the ld. CIT(A) has determined the unexplained cash credit by considering the peak credit amount deposited, which is nothing but an estimated credit, the Assessing Officer was not legally and factually correct to levy penalty under section 271(1)(c) of the Act. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of ₹. 5,92,178/- after deducting house property loss of ₹. 53,981/-. The case has been selected for scrutiny since the assessee had a cash deposit of ₹. 27,31,700/- in BHEL Employees Co-operative Bank Ltd., Trichy. After considering the submissions and details against statutory notices, the Assessing Officer has completed the assessment under section 143(3) of the Act dated 27. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details, the Assessing Officer levied penalty of ₹. 3,95,137/- under section 271(1)(c) of the Act. On appeal, the ld. CIT(A) confirmed the penalty levied under section 271(1)(c) of the Act. 4. On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that against quantum addition, by applying peak credit theory, the ld. CIT(A) has g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer added the entire sum of credit in the BHEL Employees Cooperative Bank account of ₹. 25,00,000/- under section 69A of the Act. On appeal, by restricting the addition to the extent of ₹. 12,73,250/-, the ld.CIT(A) added the peak credit of ₹. 9,73,250/- to the declared income and moreover granted relief of ₹. 3,00,000/- being personal and house hold expenses, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount deposited, which is nothing but an estimated credit, the Assessing Officer was not legally and factually correct to levy penalty under section 271(1)(c) of the Act. Accordingly, the penalty levied under section 271(1)(c) of the Act stands deleted. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced on 28th July, 2023 at Chennai. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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