While dismissing the assessees appeal the Ahmedabad bench of Income Tax Appellate Tribunal confirmed the penalty under section 271(1)(c) of the Income Tax Act, 1961 imposed on assessee on ground that the assessee failed to prove the genuineness of cash deposits.
The division bench was hearing appeal filed by the assessee against the order of the first appellate authority confirming Assessing Officer’s action in imposing penalty of Rs.3,92,920/- in his order under section 271(1)(c) of the Income Tax Act, 1961.
The department made an allegation against the assessee that it received in cash each obtained from 16 different parties/relatives.
The authority didn’t receive a single confirmation or relative was produced to support of genuineness of cash loan plea, the bench observed. Therefore invoked impugned penal provision in his order for levying of penalty after concluding that its act and conduct amounted to both concealment as well as furnishing of inaccurate particulars of income.
The Tribunal noted that there is no dispute about the assessee having deposited the above amounts in cash. This quantum amount of Rs.11,62,500/- involves two different instances of Rs.9.00 lakhs and Rs.6,62,5000/- and the same was received as advance against agreement on sale of land, the assessee didn’t filed even a single name of the payer/vendee.
The tribunal found in notice that the assessee has not filed even a single satisfactory documentary or oral evidence or confirmation to the satisfaction of the lower authorities so as to prove genuineness of the above two cash deposits.
Finally the tribunal bench including Judicial Member S.S.Godara and Accountant Member Amarjit Singh declared that the only dispute in instant case is lack of such a satisfactory explanation coming from assessee’s side. Therefore there no reason for the bench to interfere with both lower authorities’ action of imposing impugned penalty.
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