JASPAL SINGH SEHGAL,MUMBAI vs. ITO 21(2)(1), MUMBAI

O R D E R

PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A), Mumbai, for the assessment year 2009-2010, in the matter of imposition of penalty u/s.271(1)(c) of the I.T.Act. 2. Rival contentions have been heard and record perused. In this case penalty was imposed with respect to addition of Rs.20,65,000/- upheld by CIT(A) u/s.68 of I.T.Act. 3. From the record we found that during course of scrutiny assessment the AO found that assessee has deposited various cash in bank account for which he could not explain the source, accordingly addition of Rs.22,78,695/- was made u/s.68/69A of the I.T.Act. As the additions were upheld by CIT(A), the AO also levied penalty with respect to these deposits in the bank account. At the outset, ld. AR placed on record order of the Tribunal, wherein quantum addition has been deleted with respect to opening of cash balance of Rs.3,86,222/- withdrawal from Axis Bank Rs.9,73,000/- and from PMC Bank Rs.2,33,100/-. As the additions have been deleted in quantum appeal by the Tribunal vide its order dated 16-3-2016, no penalty is imposable for such addition. Accordingly, we direct the AO to delete the penalty with respect to these additions. 4. We found that the Tribunal in its quantum appeal has upheld penalty with respect to addition of Rs.3,55,000/- as friendly loans, Rs.1,50,000/- as gift from mother an dRs.3,50,000/- as gift from father. As the quantum addition made by the AO with respect to these sources of income have been upheld by the Tribunal, we direct the AO to restrict the penalty only with respect to these additions amounting to Rs.8,55,000/- (Rs.8,55,000/-). 5. In the result, appeal of the assessee is allowed in part. Order pronounced in the open court on this 23/06/ 2016. (RAM LAL NEGI) (R.C.SHARMA) न्यानयक सदस्य / JUDICIAL MEMBER