ITO, Chandigarh v. Brig. (Retd.) Jagjiwan Singh Jagdev, Chandigarh

ITA 1325/CHANDI/2012 | 2009-2010
Pronouncement Date: 07-11-2014 | Result: Dismissed

Appeal Details

RSA Number 132521514 RSA 2012
Assessee PAN AAYPJ2073L
Bench Chandigarh
Appeal Number ITA 1325/CHANDI/2012
Duration Of Justice 1 year(s) 10 month(s) 16 day(s)
Appellant ITO, Chandigarh
Respondent Brig. (Retd.) Jagjiwan Singh Jagdev, Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 07-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 07-11-2014
Date Of Final Hearing 03-11-2014
Next Hearing Date 03-11-2014
Assessment Year 2009-2010
Appeal Filed On 21-12-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI T.R. SOOD ACCOUNTANT MEMBER ITA NO. 1325/CHD/2012 ASSESSMENT YEAR: 2009-10 THE ITO VS. BRIG. (RETD) JAGJIWAN SINGH WARD 3(2) CHANDIGARH #2253 SECTOR 21 CHANDIG ARH PAN NO. AAYPJ2073L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJEEV KUMAR RESPONDENT BY : SHRI AJAY KUMAR JAIN DATE OF HEARING : 3.11.2014 DATE OF PRONOUNCEMENT : 7.11.2014 ORDER PER T.R.SOOD A.M. THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 11.10.2012 OF CIT(A) CHANDIGARH. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLO WING EFFECTIVE GROUND:- 1. LD. CIT(A) HAS ERRED IN FACTS AS WELL AS LAW IN DEL ETING PENALTY U/S 271(1)(C) BECAUSE THE ASSESSEE DID NOT DISCLOSE THE CASH DEPOSITS VOLUNTARILY IN THE RETUR N OF INCOME AND THE ASSESSEE CAME FORWARD FOR SURRENDER SUBJECT TO NO PENALTY ONLY WHEN THE ASSESSING OFFIC ER POINTED OUT THE CASH CREDITS IN HIS BANK ACCOUNT. 3. AFTER HEARING BOTH THE PARTIES WE FIND THAT DURI NG ASSESSMENT PROCEEDINGS IT WAS NOTICED ON THE BASIS OF AIR INFORMATION THAT ASSESSEE HAS DEPOSITED A SUM OF RS. 19 11 000/- IN CASH IN THE BANK ACCOUNT WITH ICICI BANK. IN RESPONSE TO THE QUERY IT WAS STATED AS UNDER:- 2 WITH REFERENCE TO THE QUERY RAISED BY YOUR GOODSEL F REGARDING THE CASH DEPOSIT OF RS. 19 11 000/- IN MY BANK ACCOUNT WITH ICICI BANK LTD IT IS SUBMITTED THAT A LTHOUGH THE AMOUNT WAS RECEIVED IN CASH BY ME IN FAMILY SET TLEMENT FROM MY BROTHERS BUT SINCE THERE IS NO EVIDENCE AV AILABLE WITH ME AND I BEING A SENIOR CITIZEN AND RETIRED AR MY OFFICER IN ORDER TO BUY A PEACE OF MIND IS SURRENDERING THI S AMOUNT AS MY INCOME DURING THE YEAR SUBJECT TO NO PENAL AC TION BY THE DEPARTMENT WHICH MAY PLEASE BE ACCEPTED AS I DO NOT WANT TO GO INTO ANY LITIGATION. 4. THIS EXPLANATION WAS ACCEPTED AND AMOUNT WAS ADD ED TO THE INCOME OF THE ASSESSEE AND PENALTY PROCEEDINGS U/S 271(1)(C) WERE ALSO INITIATED. 5. IN RESPONSE TO THE SHOW CAUSE NOTICE FOR LEVY OF PENALTY THE ASSESSEE REITERATED THE EXPLANATION GIVEN DURING THE ASSESSM ENT PROCEEDINGS. HOWEVER ASSESSING OFFICER DID NOT ACCEPT THE SAME AND LEVIE D A MINIMUM PENALTY AMOUNTING TO RS. 6 23 897/-. 6. ON APPEAL BEFORE LD. CIT(A) DETAILED WRITTEN SU BMISSIONS WERE FILED BY LD. CIT(A) AT PARA 4 WHICH IS AS UNDER:- 'THE ASSESSES IS A RETIRED ARMY OFFICER WHO SPENT W HOLE OF HIS LIFE REMAINING IN THE FIELD ON DIFFERENT STATIO NS AND AFTER HIS RETIREMENT HE FOUND THAT ALL HIS ANCESTRAL PROP ERTY WAS TAKEN BY HIS BROTHERS. HOWEVER SINCE HE DID NOT WA NT TO PURSUE THE MATTER IN THE COURT OF LAW HE PREFERRED AN AMICABLE SETTLEMENT WITH HIS BROTHER AND HE GOT SET TLEMENT AMOUNT IN CASH FROM HIS BROTHER. HOWEVER THERE WAS NO WRITTEN SETTLEMENT. THE SAME AMOUNT WAS DEPOSITED I N HIS BANK ACCOUNT AND THE FACT WAS MADE KNOWN TO THE ASS ESSING OFFICER. SINCE THE ASSESSEE WAS NOT ON GOOD TERMS W ITH HIS BROTHER HE COULD NOT PROCURE ANY EVIDENCE TO THIS E FFECT AND IN ORDER TO AVOID LITIGATIONS AND TO BUY PIECE OF M IND HE PREFERRED TO SURRENDER THE AMOUNT BEFORE THE ASSESS ING 3 OFFICER AS LAW AVOIDING CITIZEN. THE OFFER OF SURRE NDER WAS MADE SUBJECT TO NO PENAL ACTION BY THE DEPARTMENT. ACCORDINGLY THE TAX IN THE SURRENDER AMOUNT WHICH W ORKED OUT TO RS. 825920/- WAS DEPOSITED BY THE ASSESSEE V IDE CHALLAN NO. 00002 DATED 22.11.2011 WITH AXIS BANK P HASE- 7 MOHALI BSR CODE NO. 6360087. AS EVIDENCE THE RECEIPTED COPY OF CHALLAN IS ENCLOSED HEREWITH. THE CONTENTION OF THE ASSESSING OFFICER THAT SINCE THE SURRENDER WAS MADE AFTER START OF THE ASSESSMENT PROCEEDINGS HAS NO VALUE IS NOT CORRECT BECAUSE OBVIOUSLY THE SURRENDE R WILL BE MADE AFTER START OF THE ASSESSMENT PROCEEDINGS BUT BEFORE COMPLETION OF THE ASSESSMENT PROCEEDINGS. IN THE CA SE ALSO THE SURRENDER WAS MADE SUBJECT TO NO PENAL ACTION A ND THE DUE TAX WAS DEPOSITED AS A LAW AVOIDING CITIZEN IN ORDER TO AVOID FURTHER LITIGATIONS. IT IS THEREFORE PRAYED BEFORE YOUR GOOD SELF THAT I N VIEW OF THE ABOVE EXPLAINED FACTS AND CIRCUMSTANCES A LENIE NT VIEW MAY BE TAKEN AND THE PENALTY ORDER PASSED BY THE AS SESSING OFFICER BE QUASHED BECAUSE IT IS ERRONEOUS ARBITRARY AND ILLEGAL AND HENCE UNTENABLE.' 7. THE LD. CIT(A) AFTER CONSIDERING THIS EXPLANATIO N OBSERVED THAT PENALTY HAS BEEN LEVIED WITHOUT MAKING ANY INQUIRY ON THE S UBMISSIONS OF THE ASSESSEE AND THEREFORE PENALTY WAS NOT LEVIABLE. 8. BEFORE US LD. DR STRONGLY SUPPORTED THE ORDER OF ASSESSING OFFICER. 9. ON THE OTHER HAND THE LD. COUNSEL OF THE ASSESS EE SUPPORTED THE IMPUGNED ORDER AND SUBMITTED THAT ASSESSEE HAS GIVE N EXPLANATION BUT SINCE EVIDENCE WAS NOT AVAILABLE FOR HAVING RECEIVED THE AMOUNT FROM THE FAMILY ASSESSEE PREFERRED TO PAY THE TAX THIS DOES NOT C ALL FOR LEVY OF PENALTY. HE ALSO RELIED ON THE DECISION OF CHANDIGARH BENCH OF THE T RIBUNAL IN THE CASE OF DCIT 4 LUDHIANA VS. INDER MOHAN TULI KARTA L/H SHRI MEHNG A RAM TULI & SONS (HUF) LUDHIANA IN ITA NO.1396/CHD/2010. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE FIND THAT LD. CIT(A) HAS GIVEN A FINDING THAT SURRENDER WAS MADE ON VOLUNTAR ILY BASIS AND NO INQUIRY HAS BEEN MADE TO DISLODGE THE EXPLANATION OF THE ASSESS EE. IN OUR OPINION IN VIEW OF THIS FINDING THE PENALTY HAS BEEN CORRECTLY DELE TED. THEREFORE WE FIND NOTHING WRONG WITH THE ORDER OF LD. CIT(A) AND WE C ONFIRM THE SAME. 6. IN THE RESULT REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07.11.2014 SD/- SD/- (BHAVNESH SAINI) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 7 TH NOVEMBER 2014 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT TH E CIT(A) THE DR 5