M/S J.K. TRANSPORT & CONSTR. CO.,,RAJKOT-GUJARAT vs. THE DY. COMMR. OF INCOME TAX, CIR.-1(1),, RAJKOT-GUJARAT

The assessee has raised the following grounds of appeal:-

Before us, none appeared on behalf of the assessee. The Ld. DR submitted that this is an appeal against order passed u/s 271(1)(c) of the Act. The quantum proceedings have been decided against the assessee post directions of ITAT and on that basis Ld. CIT(Appeals) confirmed the penalty u/s 271(1)(c) of the Act. Briefly, the facts of the case are that during the course of assessment, the AO observed that as per TDS deduction chart, the assessee had earned interest income of ₹ 20, 99, 502/-, however it had declared interest income of ₹ 13, 09, 433/-only. The AO made addition of ₹ 7, 90, 690/-on account of this difference in the assessment order. The assessee challenged this disallowance before Ld. CIT(Appeals) who directed the AO to verify the issue and grant relief to the assessee. The assessee carried the matter to the ITAT to restore the issue to the file of the AO for fresh adjudication after giving reasonable and fair opportunity to the assessee. During the assessment proceedings for giving effect to the directions of the ITAT, the assessee could not justify in the short credit of interest received and accordingly the assessing Officer made the addition of ₹ 7, 90, 069/-. The assessee again carried the matter to Ld. CIT(Appeals) who confirmed the said addition vide order dated 08-01-2014. On these facts, Ld. CIT(Appeals) confirmed the penalty u/s 271(1)(c) of the Act.

We have heard the contentions of the Ld. DR and perused the material on record. In our considered view, despite several opportunities having being given to the assessee, he was unable to explain/reconcile the difference of ₹ 7,90,069/- in the interest shortfall. Therefore, in the instant facts, it is a fit case for levy of penalty u/s 271(1)(c) of the Act, and accordingly we find no infirmity in the order of the Ld. CIT(Appeals) confirming the penalty imposed by the AO. In the result, appeal of the assessee is dismissed.

In the result, the appeal of the assessee is dismissed.