9911796707
TMI Blog2023 (8) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... pertain to him. Accordingly, AO brought to tax an amount which was upheld by the CIT (A) in the quantum appeal and the AO thereafter initiated penalty proceedings u/s 271(1)(c) and levied penalty. Considering the totality of the facts of the case, we are of the considered opinion that levy of penalty of 100% of the tax sought to be evaded will meet the ends of justice, we, therefore, modify the order of the CIT (A) and direct the AO to restrict the penalty u/s 271(1)(c) at 100% of the tax sought to be evaded. Decided partly in favour of assessee. - BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER For the Appellant : Shri K.A. Sai Prasad, CA For the Respondent : Shri K.P.R.R. Murthy, CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck (Silver) 53,769 3 Excess silver stock admitted in IDS 2,33,400 3.1 During the course of scrutiny proceedings, the assessee admitted the discrepancy in closing stock of gold. Further, he stated that the gross weight of gold ornaments includes stones, pearls and wax items which cannot be ignored as a contributing factor for such difference. Considering the submissions of the assessee, the value of excess stock of gold was worked out to Rs. 12,12,959/- and added to the total income. 4. In appeal, the learned CIT (A) upheld the action of the Assessing Officer on the ground that the assessee could not prove that the stock did not pertain to him and that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11,00,000/- which comes to 298% of the tax sought to be evaded. Relying on various decisions, he submitted that such penalty should be reduced to 100% of tax sought to be evaded. 9. The learned Dr, on the other hand, heavily relied on the order of the CIT (A) and submitted that the CIT (A) has given justifiable reasons while upholding the penalty of Rs. 11.00 lakhs levied by the Assessing Officer u/s 271(1)(c) of the Act and therefore, the same should be upheld. 10. We have heard the rival arguments made by both the sides and perused the record. It is an admitted fact that the Assessing Officer made addition of Rs. 12,12,959/- being the value of excess stock of gold on the ground that the assessee could not substantiate with evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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