VIKESH CHATURBHUJ AGRAWAL,NAGPUR vs. I.T.O. WARD -4(1), NAGPUR

This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)-4, Nagpur [‘the CIT(A)’] dated 30.12.2015 for the assessment year 2007-08 confirming the levy of penalty of Rs.11,21,383/- u/s 271(1)(c) of the Income Tax Act, 1961 (‘the Act’).

Briefly, the facts of the case are that the appellant is an individual deriving income under the head “business”. The Return of Income for the assessment year 2007-08 was filed on 29.10.2007 declaring total income of Rs.3,22,870/-. Against the said return of Income Tax Officer, Ward-4(1), Nagpur (‘the Assessing Officer’) vide order dated 22.12.2009 passed u/s 143(3) of the Act at a total income of Rs.4,72,870/-. Subsequently, on receipt of the information that the appellant had paid on-money consideration in cash over and above the consideration mentioned in the sale deed at the time of purchase of agricultural land, the Assessing Officer had issued a notice u/s 148 on 09.08.2011. Thereafter, the assessment u/s 143(3) r.w.s. 147 of the Act was completed by the Assessing Officer vide order dated 26.03.2013 at total income of Rs.37,76,536/-. While doing so, the Assessing Officer brought to tax alleged on-money consideration paid in cash of Rs.14,16,666/- and Rs.18,87,000/- at the time of purchase of agricultural lands, the source of which remains unexplained. Being aggrieved by the above assessment order, an appeal was filed before the ld. CIT(A), who had confirmed the addition. 3. Even on further appeal before the Hon’ble ITAT vide for A.Y. 2007-08, order dated 03.07.2023 had confirmed the order of the ld. CIT(A). 4. Subsequently, the Assessing Officer had proceeded to levy of penalty u/s 271(1)(c) vide order dated 29.10.2013 holding that the