ANIL CHAUDHARY,GHAZIABAD vs. AO - 72(5), NEW DELHI

This appeal by assessee has been directed against the order of Ld. CIT(Appeals)-21, New Delhi dated 04.01.2019 for AY 2008-09, challenging the levy of penalty u/s 271(1)(c) of the Act.

2 ITA.No.1163/Del./2019 dated 23.03.2015 at a taxable income of Rs. 13,64,336/- as against the declared income of Rs. 2,83,091/-. In the original assessment AO made three additions which includes addition on account of unexplained cash deposit in bank of Rs. 10,35,000/-. The assessee preferred appeal before the Ld. CIT(A) and got the relief. However, the Revenue Department preferred appeal before ITAT against the order of the Ld. CIT(A) against relief allowed on account of cash deposit of Rs. 10,35,000/-. The ITAT restored the matter to the file of AO for re-adjudication. The assessee, however, failed to explain the source of the deposit of Rs. 10,35,000/-, therefore, AO again made the addition vide assessment order dated 23.03.2015 (supra). The AO vide separate order levied the penalty on this addition. It may also be noted here that assessee did not explain the matter in issue even at penalty stage. The Ld. CIT(A) also noted that assessee sought adjournments but ultimately no compliance has been made, therefore, Ld. CIT(A) decided the appeal of assessee ex-parte and in absence of any 3 ITA.No.1163/Del./2019 evidence on record confirm the levy of penalty on cash deposit of Rs. 10,35,000/-. Appeal of assessee has been dismissed.

However, assessee failed to explain source of the cash deposits. The assessee also failed to explain source of the cash deposits in penalty proceedings as well as penalty appellate proceedings. No interference is called for in the matter.

Order pronounced in the open Court.