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TMI Blog2009 (8) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... ue. Mr. Rajiv Sharma, Advocate for the assessee. JUDGMENT ADARSH KUMAR GOEL, J. (Oral) - The revenue has preferred this appeal under Section260A of the Income Tax Act, 1961 (for short, "the Act") against the order dated 23.5.2008 passed by the Income Tax Appellate Tribunal, Delhi Bench 'I' New Delhi in ITA No. 243 /DEL/2005 for the Block Assessment 1.4.1989 to 31.3.1999, proposing to raise the following substantial questions of law: A. "Whether on the facts and in the circumstances of the case Ld. ITAT was right in law in restoring the issue of undisclosed investment of Rs.3,77,041/- based on material seized during search (Document No.A-12 pages 3 and 4) on account of purchase of Maruti Gypsy Car, back to the file of Assessing Officer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest. The Tribunal remanded the matter to the Assessing Officer in respect of purchase of car and levy of interest but upheld part deletion towards investment in M/s Sabharwal International. Relevant part of the finding recorded by the Tribunal is as under: " We have considered the rival contentions and found from the record that assessee has got Maruti Zipsy through M/s Som Dutt Financer Ltd., and also paid margin money of 10% . However, due to default in payment on finance instalments, the vehicle was taken back by the financer and, therefore nothing was alleged to be paid subsequently. There is no dispute to the well settled legal proposition that onus lies on the assessee to substantiate the entries found recorded in seized material. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the extent of Rs.30,000/-, the CIT(A) retained total addition to the extent of Rs.1.30 lacs in place of Rs.7.75 lacs. We do not find any reason to interfere in the order of CIT(A) for restricting the addition of Rs.1,30,000/-which is as per material on record." xx xx xx xx xx xx " Before levying such penal interest, default on the part of the assessee is required to be established, unless such default if attributable on the part ofd the assessee, the revenue cannot penalize the assess for no default on him. Since this interest is penal in nature, the department cannot be allowed to say that levy of interest under Section 158BFA(1) is automatic. There is no dispute to the well settled legal proposition that penal provisions of the Act s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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