MIHIR H. BILAKHIA,MUMBAI vs. ITO 25(3)(1),

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ITA 3471/MUM/2013Status: DisposedITAT Mumbai04 May 2016AY 2005-063 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal confirmed the penalty levied under Section 271(1)(c) of the Income Tax Act. This was due to the assessee's failure to explain the sources of the cash deposits and provide any explanations during the penalty proceedings.

What were the facts?

The assessee's appeal concerns a penalty levied under Section 271(1)(c) for the assessment year 2005-06. The penalty was based on an addition of Rs. 17,02,748/- relating to unexplained cash deposits in the assessee's bank account.

What were the issues?

Whether the penalty under Section 271(1)(c) was rightly confirmed for unexplained cash deposits in the bank account.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI B.R. BASKARAN (AM) & SHRI AMIT SHUKLA (JM)

For Respondent: Shri Prakash L. Pathade
Hearing: 12.04.2016Pronounced: 04.05.2016

The appeal filed by the assessee is directed against the order dt. 27.2.2013 passed by CIT(A) – 35, Mumbai for Assessment Year 2005- 06 confirming penalty of Rs. 5,83,324/- levied u/s 271(1)(c) of the Income Tax Act, 1961.

2.

None appeared on behalf of the assessee even though the case was adjourned on the earlier occasion at the request of the assessee. Hence, we proceed to dispose of the appeal ex parte, without the presence of the assessee.

3.

We heard the Ld. DR and perused the record. We notice that the penalty has been levied on the addition of Rs.17,02,748/- relating to the cash deposit found in the bank account of the assessee. We notice that the assessee did not explain the sources for the bank deposits and hence he did not succeed in the appeal before the Ld. CIT(A) in the quantum assessment proceedings. These facts have been noted by the Ld. CIT(A), and accordingly he took the view that the assessee has concealed particulars of income, and accordingly confirmed the penalty order.

4.

Since the assessee has failed to explain the sources for making the bank deposits, and since the assessee has failed to furnish any explanations during the penalty proceedings also, we are of the view that the Ld. CIT(A) was justified in confirming the penalty levied u/s. 271(1)(c) of the Income Tax Act, 1961. Accordingly, we confirm the order of Ld. CIT(A).

5.

In the result, appeal filed by the assessee is dismissed.

Order pronounced in the open court on 4th May, 2016.

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