Assessee having right to contest levy of penalty apart from the findings recorded in the assessesment order

Court :
Income Tax Appellate Tribunal

Brief :
This appeal filed by the assessee is directed against the order passed by the CIT(A) dated 2nd June, 2011 for Asstt. Year 2005-06. The grounds of appeal read as under: “That order passed u/s 250(6) of the Income Tax Act, 1961 by the ld. CIT(A)-II, Dehradun is against law and facts on the file inasmuch as he was not justified to arbitrarily uphold levy of penalty u/s 271(1)(c) at Rs.50,000/-.” The impugned assessment was framed vide order dated 12.12.2008 passed under section 143(3) r/w section 148 of the Act. Information from AIR was received, on the basis of which it was found that there were credit card transactions of Rs. 9,26,686/- through the credit card of the assessee. The assessee was required to explain the same. The assessee expressed his inability to get the details of the Standard Chartered Bank credit card transactions for the relevant period and the bank details as the payments were old and relevant records were not traceable. Thus, the addition was made on that account and on which the penalty has been levied.

Citation :
Shri A.S. Bindra (Appellant)Vs Asstt. Commissioner of Income Tax,

Daily Limit Reached