DR. SMT. KIRTI ANANT NAGVEKAR,, Sindhudurg v. ITO,Wd.-2(4),, Kudal

ITA 1194/PUN/2008 | 2004-2005
Pronouncement Date: 16-03-2011 | Result: Allowed

Appeal Details

RSA Number 119424514 RSA 2008
Assessee PAN AAPPN9640Q
Bench Pune
Appeal Number ITA 1194/PUN/2008
Duration Of Justice 10 month(s) 17 day(s)
Appellant DR. SMT. KIRTI ANANT NAGVEKAR,, Sindhudurg
Respondent ITO,Wd.-2(4),, Kudal
Appeal Type Income Tax Appeal
Pronouncement Date 16-03-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 16-03-2011
Date Of Final Hearing 10-03-2011
Next Hearing Date 10-03-2011
Assessment Year 2004-2005
Appeal Filed On 29-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI I C SUDHIR JUDICIAL MEMBER AND SHRI G.S. PANNU ACCOUNTANT MEMBER I.T.A. NO. 1194 & 1195/PN/08 (ASSTT. YEARS: 2004-05 & 2005-06) DR (SMT) KIRTI ANANT NAGVEKAR .. APPE LLANT DR NAGVEKAR HOSPITAL & NURSING HOME OPP. VIDHYAMANDIRCOLLEGE ROAD KANKAVALI DIST. SINGHUDURG PAN AAPPN 9640Q VS. INCOME-TAX OFFICER .. RESPONDENT WARD 2(4) KUDAL PAN AAACT 3904F APPELLANT BY: SHRI M.K. KULKARNI RESPONDENT BY: SHRI ABHAY DAMLE ORDER PER G.S. PANNU AM THESE TWO CAPTIONED APPEALS BY THE ASSESSEE ARE DI RECTED AGAINST A COMMON ORDER OF THE COMMISSIONER OF INCOME-TAX (A PPEALS) KOLHAPUR DATED 12.02.2008 WHICH IN TURN HAVE ARISEN FROM P ENALTY ORDERS PASSED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT (IN SHORT THE ACT) PERTAINING TO THE ASSESSMENT YEAR 2004-05 AND 2005-06. 2. THE ONLY ISSUE RAISED IN THE APPEALS BEFORE US I S THAT THE COMMISSIONER OF INCOME-TAX (APPEALS) WAS NOT JUSTIF IED IN CONFIRMING THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT FOR THE ASSESSMENT YEARS 2004-05 AND 2005-06. THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS A MEDICAL PROFESSIONAL M.B.B.S. D.G.O. D.A PRACTICIN G AS ANESTHETIST AND HELPING HER HUSBAND DR ANANT NAGVEKAR A MEDICAL P RACTITIONER IN ITA NO 1194 & 1195/PN/08 DR (MRS) KIRTI A NAGVEKAR SINDHUDURG 2 NAGVEKAR HOSPITAL. DURING THE COURSE OF ASSESSMENT PROCEEDINGS FOR THE ASSESSMENT YEAR 2004-05 THE ASSESSING OFFICER HAD MADE ADDITIONS ON ACCOUNT OF SUPPRESSED PROFESSIONAL RECEIPTS PROFES SIONAL RECEIPTS INVESTED ON GOAT FARMING AND AMOUNT INCURRED ON EDU CATIONAL EXPENSES. SIMILARLY FOR THE ASSESSMENT YEAR 2005-06 THE ASS ESSING OFFICER HAD MADE ADDITION ON ACCOUNT OF DECLARATION OF EXCESS S TOCK OF RS 2 17 000/- MADE BY THE ASSESSEE. SUBSEQUENTLY THE ASSESSING O FFICER LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT FOR BOTH THE YEARS UNDER CONSIDERATION HOLDING THAT THE ASSESSEE HAS NOT PRE FERRED ANY APPEAL AGAINST THE ASSESSMENT ORDERS AND THAT THE ASSESSEE HAS CONCEALED PARTICULARS OF HER INCOME FROM PROFESSION GOAT FAR MING BUSINESS INADMISSIBLE CLAIM OF DEPRECIATION ON SHED AND EXPE NDITURE INCURRED ON EDUCATION EXPENSES OF HER SON. IN APPEAL THE COMMI SSIONER OF INCOME- TAX (APPEALS) PARTLY CONFIRMED THE PENALTY ORDERS P ASSED BY THE ASSESSING OFFICER IN RELATION TO EDUCATIONAL EXPENSES AND INC OME ON ACCOUNT OF UNEXPLAINED STOCK. BEING AGGRIEVED THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS CAREFUL LY. WE HAVE CAREFULLY PERUSED THE ORDERS PASSED BY THE ASSESSIN G OFFICER UNDER SECTION 271(1)(C) OF THE ACT. IT IS ABUNDANTLY CLEA R THAT THE ONLY REASON ADVANCED TO SUSTAIN THE PENALTY IS THE FACT THAT TH E ASSESSEE HAS NOT PREFERRED ANY APPEAL AGAINST THE ASSESSMENT ORDERS. ADMITTEDLY NO CASE HAS BEEN MADE OUT BY THE ASSESSING OFFICER AS TO HO W THE ADDITIONS IN QUESTION CONSTITUTE CONCEALMENT OF INCOME WITHIN TH E MEANING OF SECTION 271(1)(C) OF THE ACT. FOR THE SAID REASON WE FIND NO JUSTIFICATION TO UPHOLD THE LEVY OF PENALTY OR THE ADDITIONS STATED IN THE GROUNDS OF APPEAL FOR ITA NO 1194 & 1195/PN/08 DR (MRS) KIRTI A NAGVEKAR SINDHUDURG 3 BOTH THE YEARS UNDER CONSIDERATION. WE ACCORDINGLY SET ASIDE THE ORDERS OF THE COMMISSIONER OF INCOME-TAX (APPEALS) AND DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTIES LEVIED UNDER SECTIO N 271(1)(C) OF THE ACT QUA THE ADDITIONS STATED IN THE GROUNDS OF APPEAL FOR B OTH THE ASSESSMENT YEARS 2004-05 AND 2005-06. 5. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON THIS 16 TH DAY OF MARCH 2011. SD/- SD/- (I.C. SUDHIR) JUDICIAL MEMBER (G.S. PANNU) ACCOUNTANT MEMBER PUNE: DATED: 16 TH MARCH 2011 B COPY OF THE ORDER IS FORWARDED TO : 1. DR (MRS) KIRTI A NAGVEKAR SINDHUDURG 2. ITO WD 2(4) KUDAL 3. THE CIT(A) KOLHAPUR 4. THE CIT-I KOLHAPUR 5. THE D.R A BENCH PUNE TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT PUNE BENCHES PUNE