HUSH INDIA P.LTD,MUMBAI vs. ITO 8(2)(1), MUMBAI

This appeal filed by the assessee on 21.7.2014 is against the order of the CIT (A)-17, Mumbai dated 12.5.2014 in connection with confirming of the penalty of Rs. 1,79,430/- u/s 271(1)(c) of the Act.

Briefly stated relevant facts of the case are that the assessee is engaged in the business of trading in pillows, waddings, mattress and filling fabrics and commission agents. During the year under consideration, assessee supplied pillows, mattress to M/s. Ennoble Hotel. There was a search and seizure action u/s 132 / 133A of the Act on Shri G. Janarthan Reddy Group of cases and on the said Ennoble Hotel. A diary was seized wherein a entry was found showing the transaction of payment of cash amounting to Rs. 5,80,960/- to the assessee-company. During the assessment proceedings, AO made addition of the same being unaccounted cash. CIT (A) confirmed the same and ITAT also affirmed the decision of the CIT (A) / AO on merits. During penalty proceedings, on completion of the procedural part granted an opportunity of being heard to the assessee as required under the statute and levied the minimum penalty of Rs. 1,79,430/-. CIT (A) confirmed the same despite the denial of the assessee that it ever received any cash from M/s. Ennoble Hotel. Aggrieved, assessee filed the present appeal before the Tribunal.