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Income Tax Appellate Tribunal, CHANDIGARH BENCHES, “SMC CHANDIGARH
Before: SHRI. VIKRAM SINGH YADAV, AM
Order
PER VIKRAM SINGH YADAV, AM:
This is an appeal filed by the Assessee against the order of the Ld. CIT(A)-1, Chandigarh dt. 06/08/2019 pertaining to Assessment Year 2010-11 wherein the assessee has challenged the sustenance of levy of penalty under section 271(1)(c) of the Act amounting to Rs. 2,56,500/-.
Briefly, the facts of the case are that the assessment was completed under section 143(3) of the Act vide order dt. 05/02/2013 wherein the AO has brought to tax a sum of Rs. 8,10,000/- as unexplained cash deposit in the bank account of the assessee and penalty proceedings were initiated for concealing the particulars of income and notice under section 274 r.w.s 271(1)(c) was issued. Thereafter after taking into consideration the submissions filed by the assessee and the fact that the assessee has not filed any appeal against the quantum proceedings, the AO held that it is a case of concealment of particulars of his income and he recorded his satisfaction and penalty amounting to Rs. 2,56,500/- was levied on the assessee.
Being aggrieved the assessee carried the matter in appeal and before the Ld. CIT(A) and the relevant findings of the Ld. CIT(A) which are contained at para 5.2 of the impugned order which read as under:
2 “5.2 HELD: I have perused the order of the Assessing Officer, examined the reply of the assessee and perused the assessment record. Brief facts of the case are the assessment framed by the AO at an income of Rs. 10,90,600 after making an addition of Rs.8,75,000/- by treating it as income from undisclosed sources on the basis of cash flow statement. Penalty order passed u/s 271(1)(c) of the Act for concealment particulars of income. During the appellate proceedings, the appellant vide letter dated 11.06.2019 submitted that no transactions amounting to Rs.1,85,000/- and Rs.4,50,000/- had been made and reflecting in bank statement and AO has not considered the documentary evidence in respect of cash deposit of Rs.1,00,000/- & Rs.1,40,000/- and wrongly levied the penalty amounting to Rs.2,56,500/-. The ICICI Bank statement of the assessee of F.Y.2009-10 has been carefully perused and found no entry of cash credit amounting to Rs. 1,85,000/- made on 17.08.2009 and Rs.4,50,000/- made on 06.10.2009. However, all four entries of cash credit totaling amounting to Rs.8,75,000/- are duly reflecting in cash flow statement submitted by the appellate before the Assessing Officer during the assessment proceedings. The onus is, therefore, upon the assessee to prove the source of cash credit reflecting in cash flow statement. The assessee in fact, failed to submit documentary evidence in support of these cash credits during the assessment as well as appellate proceedings. Therefore, penalty amounting to Rs.2,56,500/- imposed on unexplained cash credit of Rs.8,75,000/- is hereby confirmed. TheAO has duly initiated penalty in the assessment order for concealment of particulars of income. Appellant was given due opportunity during penalty proceedings. Hence legal objections raised are rejected. The Grounds of Appeal
Nos. 2 to 5 are dismissed.
4. Being aggrieved, the assessee carried the matter in appeal before us.
5. None appeared on behalf of the assessee nor was any adjournment application filed. However, on perusal of records, it is noted that the assessee had filed a declaration under the Vivad Se Vishvas Scheme and claimed refund of tax and penalty and the matter of refund claim is near resolution with issuance of amended Form 3 by the Competent authority and it was requested to adjourn the matter which was acceded to and the matter has now come again for hearing today. However, as noted earlier, none has appeared on behalf of the assessee nor there is any further communication.
6. The Ld. Sr Dr was also heard and it was submitted that it is an accepted fact that the assessee has moved a declaration for settlement of tax dispute under the Vsv Scheme and taking the same into consideration, the Coordinate Bench in vide order dated 8/08/2023 has dismissed the assessee’s appeal in quantum proceedings as withdrawn and a copy of the said order was placed on record.
Having heard the ld Sr DR and after perusal of the records, it is an accepted fact that the quantum appeal has already been dismissed by the Coordinate Bench as withdrawn in view of the assessee opting for the settlement under the VsV Scheme and in light of same, where the tax arrears include tax and penalty levied and the assessee