The ITO, Ward 2(4), RAJKOT-GUJARAT v. Shri Govindbhai M Solanki, RAJKOT-GUJARAT

ITA 1278/RJT/2010 | 2004-2005
Pronouncement Date: 25-11-2011 | Result: Dismissed

Appeal Details

RSA Number 127824914 RSA 2010
Assessee PAN ASVPS1953R
Bench Rajkot
Appeal Number ITA 1278/RJT/2010
Duration Of Justice 1 year(s) 3 day(s)
Appellant The ITO, Ward 2(4), RAJKOT-GUJARAT
Respondent Shri Govindbhai M Solanki, RAJKOT-GUJARAT
Appeal Type Income Tax Appeal
Pronouncement Date 25-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 25-11-2011
Date Of Final Hearing 19-05-2011
Next Hearing Date 19-05-2011
Assessment Year 2004-2005
Appeal Filed On 22-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH RAJKOT BEFORE SHRI T.K. SHARMA (JUDICIAL MEMBER) AND SHRI A.L. GEHLOT (AM) I.T.A. NO1278/RJT/2010 - AY 2004-05 I.T.A. NO1279/RJT/2010 - AY 2005-06 ITO WD.2(4) VS SHRI GOVINDBHAI M SOLANKI RAJKOT JIGNA INCOME-TAX SOCIETY RAIYA ROAD RAJKOT PAN : ASVPS1953R (APPELLANT) (RESPONDENT) DATE OF HEARING : 11-11-2011 DATE OF PRONOUNCEMENT : 25-11-2011 APPELLANT BY : SHRI NR SONI RESPONDENT BY: SHRI JC RANPURA O R D E R PER AL GEHLOT (AM) THESE APPEALS OF THE ASSESSEE ARE DIRECTED AGAINST THE ORDERS OF CIT(A)-IV AHMEDABAD BOTH DATED 03-09-2010 FOR THE ASSESSMENT YEARS 2004-05 AND 2005-06. 2. THE GROUND RAISED IN BOTH THE APPEALS IS IN RESP ECT OF LEVY OF PENALTY OF RS. 5 11 000 FOR ASSESSMENT YEAR 2004-05 AND RS. 20 38 000 FOR ASSESSMENT YEAR 2005-06. ITA NO.1278/RJT/2010 ITA NO.1279/RJT/2010 2 3. SINCE BOTH THE APPEALS ARE BASED ON IDENTICAL SE T OF FACTS THE FACTS IN THE ASSESSMENT YEAR 2004-05 HAVE BEEN CONSIDERED FOR DECIDING BOTH THE APPEALS. 4. THE BRIEF FACTS OF THE CASE ARE THAT A SEARCH WA S CARRIED OUT ON 22- 03-2006. THE ASSESSEE VOLUNTARILY DISCLOSED UNACCO UNTED INCOME WHILE FURNISHING THE RETURN OF INCOME IN RESPONSE TO NOTI CE U/S 153A OF THE ACT. THE ASSESSING OFFICER LEVIED PENALTY ON THE GROUND THAT THE ASSESSEE HAS CONCEALED THE INCOME WHICH FELL UNDER EXPLANATION T O SECTION 271(1)(C) OF THE ACT. THE CIT(A) CANCELLED THE PENALTY FOLLOWIN G THE EARLIER ORDER OF ITAT IN THE CASE OF BALAJI MULTIFLEX PVT LTD IN IT( SS) A.NO.64 & 65/RJT/09 ORDER DATED 10-08-2010. THE CIT(A) ALSO CONSIDERED THE DECISION OF ITAT AHMEDABAD BENCH IN THE CASE OF ACIT VS KIRIT DAHYAB HAI PATEL (2009) 121 ITD 159 (AHD)(TM). THE LD.AR SUBMITTED THAT TH E ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE FOLLOWING DECISIONS: ACIT VS SAMAT JARIYA IN ITA NOS.71 72 & 73/RJT/20 10 ITO VS SHRI MUKESH ZAVERI IN IT(SS)A.NO.67/RJT/2010 ORDER DAQTED 28-09-2011 ITO VS SHRI SUKLA NEHAL CHIMANLAL IN IT(SS)A.NO.60 61 62&63/RJT/2009. ITA NO.1278/RJT/2010 ITA NO.1279/RJT/2010 3 5. THE LD.DR ON THE OTHER HAND RELIED UPON THE OR DER OF ASSESSING OFFICER. 6. WE HAVE HEARD THE LD.REPRESENTATIVES OF THE PART IES RECORD PERUSED. WE FIND THAT ON IDENTICAL SET OF FACTS THE ORDER O F CIT(A) HAS BEEN CONFIRMED BY ITAT RAJKOT IN ITA NO.1287 & 1291/RJT /2010 VIDE ORDER OF EVEN DATED. THE RELEVANT PORTION OF THE ORDER OF I TAT IS REPRODUCED BELOW: 5. WE HAVE HEARD THE LD.REPRESENTATIVES OF THE PAR TIES RECORD PERUSED. THE ADMITTED FACTS OF THE CASE ARE THAT THE ASSESSEE DISCLOSED UNDISCLOSED INCOME IN RESPONSE T O NOTICE U/S 153A OF THE ACT AND THE AO ACCEPTED THAT WITHOU T ANY ADDITION TO THE UNDISCLOSED INCOME. THE DISCLOSURE WAS ADHOC DISCLOSURE NOT BASED ON THE MATERIAL FOUND DU RING THE COURSE OF SEARCH. WE FIND THAT ON IDENTICAL SET OF FACTS THE ITAT IN IT(SS)A NO.67/RJT/2010 ORDER DATED 28-09-20 11 HAS DISMISSED REVENUES APPEAL. THE RELEVANT FINDING O F THE ITAT IN IT(SS)A NO.67/RJT/2010 (SUPRA) IS REPRODUCED FRO M PARAGRAPH 3 AS UNDER: 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD.DR AND THE LD.REPRESENTATIVE FOR THE ASSESSEE. ADMITTEDLY THE RE WAS A SEARCH IN THE PREMISES OF THE ASSESSEE ON 22-03-2006 AND T HE ASSESSEE DECLARED UNDISCLOSED INCOME OF RS.8 00 000 EACH FOR AYS 2001-02 & 2004-05; RS.10 00 000 FOR A.Y 2005-06 AND RS. 15 00 000 FOR AY 2006-07. ADMITTEDLY THE ASSESSING OFFICER ACCEPTED THE RETURNS FILED BY THE ASSESSEE WITHOUT ANY FURTHER ADDITION. THE FACT REMAINS THAT THE ASSESSEE HAS DISCLOSED ALL THE INCOME IN T HE RETURNS FILED CONSEQUENT TO THE NOTICES ISSUED U/S 153C OF THE AC T. ONCE THE RETURNS WERE FILED U/S 153C ALL PENDING PROCEEDING S FOR THOSE ASSESSMENT YEARS STAND ABATED AND THEREFORE THE IN COME HAS TO BE COMPUTED ONLY ON THE BASIS OF THE RETURNS FILED BY THE ASSESSEE IN RESPONSE TO NOTICES ISSUED U/S 153A / 153C OF TH E ACT. ON IDENTICAL SET OF FACTS THIS TRIBUNAL BY FOLLOWING I TS EARLIER ORDER IN ITA NO.68/RJT/2009 CONFIRMED THE IDENTICAL ORDER OF CIT (A) IN THE CASE ITA NO.1278/RJT/2010 ITA NO.1279/RJT/2010 4 OF SHRI SHANTILAL JERAMBHAI MAHESWARI (SUPRA). IN THIS CASE ALSO THE ASSESSEE HAS DISCLOSED THE INCOME FOR ALL THE A SSESSMENT YEARS UNDER CONSIDERATION CONSEQUENT TO THE SEARCH OPERATION AND NO FURTHER ADDITION WAS MADE BY THE ASSESSING OFFIC ER. THE RETURN IF ANY PENDING ON THE DATE OF SEARCH SHALL STAND A BATED AND THEREFORE IN OUR OPINION THE CIT(A) HAS RIGHTLY D ELETED THE PENALTY. WE DO NOT FIND ANY INFIRMITY IN THE ORDERS OF THE L OWER AUTHORITY. ACCORDINGLY WE CONFIRM THEM. 6. WE RESPECTFULLY FOLLOW THE ABOVE ORDER OF THE IT AT AND IN THE LIGHT OF IDENTICAL FACTS UPHOLD THE ORDER PA SSED BY THE CIT(A) DELETING THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT. 7. SINCE FACTS ARE IDENTICAL FOLLOWING THE ABOVE O RDER OF ITAT WE CONFIRM THE ORDER OF CIT(A). 8. IN THE RESULT THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25-11-2011. SD/- SD/- (T.K. SHARMA) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER RAJKOT DT : 25 TH NOVEMBER 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-IV AHMEDABAD 4. THE CIT CENTRAL-II AHMEDABAD 5. THE DR I.T.A.T. RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR ITAT RAJKOT