MR. BHAGWAN SHEKUJI SHEJWAL,AURANGABAD vs. ITO, WARD-1(3), AURANGABAD

This appeal at the instance of assessee is directed against the order of the Ld. CIT(A)/National Faceless Appeal Centre, Delhi dated 12.08.2024 which is arising out the order u/s. 143(3) r.w.s. 147 of the Act for Assessment Year 2012-13 framed by ITO, Ward-1(3), Aurangabad.

The only issue for our consideration is regarding levy of penalty of Rs.1,68,901/- on the addition made by the Ld. Assessing Officer of Rs.8,61,948/- in the assessment for A.Y. 2012-13 framed on 13.12.2019.

We observe that the addition constitutes of two items, the first regarding unexplained cash deposit of Rs.8,10,000/- and second is undisclosed interest of Rs.51,948/-. The Ld. Assessing Officer carried out the proceedings u/s. 271(1)(c) of the Act and levied the penalty of Rs.1,68,901/-.

While dealing with the merits of the case in in assessee’s own case, we have deleted the addition of Rs.8,10,000/-. Since, the addition itself has been deleted, therefore, the penalty levied thereon also deserves to be deleted. So far as, the undisclosed interest income of Rs.51,948/- is concerned the assessee has not raised the ground in the quantum appeal. Thus, taking into the consideration of the arguments made by the Ld. Counsel for the assessee in the penalty proceedings and appellate proceedings before us and also taking note of the submissions made by the Ld. Departmental Representative, we are inclined to hold that out of the alleged penalty of Rs.1,68,901/-, the penalty of Rs.1,58,722/- deserves to be deleted in light of our decision on quantum appeal deleting the addition of Rs.8,10,000/-. The remaining amount of penalty at Rs.10,179/- is hereby confirmed. Though, the assessee has raised some legal ground also about the invocation of limb for levy of penalty, we, however, in the absence of necessary details filed by the assessee do not find necessary to deal and the same is dismissed. The penalty u/s. 271(1)(c) of the Act is confirmed at Rs.10,179/- and the remaining amount of Rs.1,58,722/- is hereby deleted. Thus, the grounds of appeal raised by the assessee are partly allowed.

In the result, the appeal of the assessee is partly allowed.