ITAT deletes Penalty related to addition for Gift from Mother

Anisha R. Dhanani Vs A.C.I.T (ITAT Ahmedabad) We note that the AO levied the penalty with respect to addition amounting to Rs. 15,28,128/- being gift/amount received on the demise of assessee’s father which was treated as unexplained cash credit under section 68 of the Act in absence of documentary evidences to establish credit worthiness of her father. It is settled position of law that the penalty proceedings are distinct from the assessment proceedings. Therefore the addition made during the assessment proceedings does not authorize the AO ipso facto to levy the penalty under section 271(...