Appeal filed against the confirmation of levy of penalty under section 271(1)(c) of the Income Tax Act, 1961

This appeal concerns a penalty levied under section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2009-10. The Assessing Officer (AO) added Rs. 14 lakhs to the assessee's income due to unexplained cash deposits. The assessee claimed these were repayments of a loan, but the AO was not satisfied, leading to the penalty. The CIT(A) confirmed this penalty, and the assessee has now appealed to the Income Tax Appellate Tribunal.

IN THE INCOME TAX APPELLATE TRIBUNAL
 “SMC” BENCH, AHMEDABAD
(Conducted through Virtual Court)

BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT

ITA No.2188/Ahd/2018
Asstt.Year : 2009-10

Late Shri Krishnamurthy
Vishvanathan
Thiruvidaimaruthur
Through Legal Heir Kala
Krishnamurthy
Plot No.146, Sector-8
Gandhinagar.
PAN : ABTPT 7611 E
(Applicant) 

Vs.

ACIT, Cir.13
Ahmedabad.
(Responent)

Assessee by : Shri P.F. Jain, AR
Revenue by : Shri R.R.Makwana, Sr.DR

Date of Hearing : 24/05/2021
Date of Pronouncement: 04/06/2021

O R D E R

The present appeal is directed at the instance of the assessee against confirmation of levy of penalty under section 271(1)(c) of the Income Tax Act, 1961 by the ld.CIT(A) vide order dated 4.9.2018 for the Asstt.year 2009-10.

2. Brief facts of the case are that the assessee has filed his return of income on 7.7.2009 declaring total income at Rs.6,12,050/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the AO that the assessee has deposited a cash of Rs.7 lakhs on 2.9.2008 and Rs.7 lakhs on 3.10.2008. He directed the assessee to explain the source of cash deposits in the Corporation Bank, Satellite Road, Ahmedabad. In response to the query of the AO, it was contended by the assessee that he was a retired IAS having pension and interest income. He has given cheque of Rs.14,25,000/- to T. Ramkrishna and S. Bhaskara Rao for purchase of some immovable property at Chennai. They have returned this amount in cash and redeposited. The ld.AO was not satisfied with the explanation. He termed it as loan taken by the assessee, whose sources have not been explained, therefore, he made an addition of Rs.14.00 lakhs to the total income of the assessee. 

To know more in details find the attachment file