Unaccounted cash was found in possession of assessee by Surveillance Team during general Assembly elections & Income Tax Additions

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Unaccounted cash was found in possession of assessee by Surveillance Team during general Assembly elections & Income Tax Additions

Penalty
Furnishing of inaccurate particular and concealment of income
Assessee was engaged in job-work pertaining to jewellery
Unaccounted cash was found in possession of assessee by Surveillance Team during general Assembly elections and in turn requisition u/s 132A was issued
AO made addition u/s 69A holding that explanation of assessee that said sum was a gift from his father out of sale proceeds of his jewellery shop was nothing but an after-thought and a concocted fanciful story to defraud Revenue because at first instance i.e., in statement u/s 132A, assessee had never stated that amount of cash was a gift from his father
CIT(A) had confirmed additions made by AO—Thereafter, AO levied penalty u/s 271(1)(c) in respect of said addition
Held, on analysis of provisions of s. 271(1)(c) it was observed that Explanation 1 to s. 271(1) provides for situation where no explanation for failure was offered by assessee or where explanation that has been offered was found to be false or where assessee was not able to substantiate explanation offered by him—In all those cases, amount added or disallowed in computing total income of such person should be deemed to represent income in respect of which particulars have been concealed—Since in instant case, assessee was not able to substantiate explanation offered by him, penalty levied was to be confirmed—Assessee’s appeal dismissed.
GARRAV GARG vs. COMMISSIONER OF INCOME TAX
(2019) 56 CCH 0289 DelTrib

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