Meha Plantatin P Ltd., Varanasi v. ITO,, Varanasi

ITA 145/ALLD/2011 | 2005-2006
Pronouncement Date: 29-11-2011 | Result: Allowed

Appeal Details

RSA Number 14520714 RSA 2011
Bench Allahabad
Appeal Number ITA 145/ALLD/2011
Duration Of Justice 3 month(s) 19 day(s)
Appellant Meha Plantatin P Ltd., Varanasi
Respondent ITO,, Varanasi
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 29-11-2011
Date Of Final Hearing 29-11-2011
Next Hearing Date 29-11-2011
Assessment Year 2005-2006
Appeal Filed On 09-08-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH: ALLAHABAD (BEFORE SHRI B.P. JAIN HON'BLE ACCOUNTANT MEMBER) I.T.A. NO. 145/A/2011 ASSESSMENT YEAR: 2005-06 NEHA PLANTATION P. LTD. -V/S.- THE INCOM E TAX OFFICER CK. 23/23 VIJAY SHREE MARKET RANGE-I WARD-1 RANI KUAN VARANASI. VARANASI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUBHASH CHA ND ADV. RESPONDENT BY : SHRI Y.P. SRIVASTA VA JCIT SR.DR DATE OF HEARING : 29.11.2011 DATE OF PRONOUNCEMENT : 29.11.2011 O R D E R PER B.P. JAIN THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER O F THE LD. CIT(A) VARANASI DATED 25/04/2011 FOR THE ASSESSMENT YEAR 2005-06. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1.BECAUSE IT WAS FULLY EXPLAINED THAT THE ASSESSEE HAS NEITHER CONCEALED ANY PARTICULAR OF INCOME NOR HAS FURNISHED ANY WRONG PA RTICULAR OF INCOME. THE LEARNED ASSESSING OFFICER HAS ERRED AND ACTED ILLEG ALLY IN TREATING THE ASSESSEE LIABLE FOR PENALTY WITHOUT ANY FINDING THAT THE WRO NG PARTICULAR OF INCOME HAS BEEN FURNISHED. THE LEARNED CIT (A) HAS ERRED AND ACTED ILLEGALLY IN CONFIRMING THE SAME. 2. BECAUSE THE LEARNED ASSESSING OFFICER AS WELL AS LEARNED CIT (A) BOTH HAVE ERRED AND ACTED ILLEGALLY IN IMPOSING THE PENA LTY TO THE TUNE OF RS. 9000/- U/S 271(L)(C) OF THE ACT. --2-- 3. BECAUSE THE PENALTY IS BAD BOTH ON FACTS IN LA W AND NOT MAINTAINABLE. 3. THE BRIEF FACTS IN THE GROUNDS OF APPEAL OF THE ASSESSEE ARE THAT THE ASSESSEE HAS DECLARED AGRICULTURAL INCOME OF RS.35000/- BEING SU PERVISION CHARGES RECEIVED DURING THE YEAR. IT WAS SUBMITTED BEFORE THE A.O. THAT THE AS SESSEE HAD INCURRED CERTAIN EXPENSES ON PLANTATION ON THE SITES OF OTHER PERSONS AS A RESUL T OF WHICH HE HAS RECEIVED RS.35000/- WHICH SHOULD BE CONSIDERED AS AGRICULTURAL INCOME A S ALREADY DECLARED IN THE RETURN OF INCOME. HE FURTHER SUBMITTED THAT THE EXPENDITURE INCURRED AS CLAIMED ARE MORE THAN THE SAID RECEIPT OF RS.35000/-. THE A.O. WAS NOT SATIS FIED WITH THE EXPLANATION OF THE ASSESSEE AND THEREFORE HE CONSIDERED THE SAID RECEI PT OF RS.35000/- AS RECEIVED FOR THE INCOME FROM OTHER SOURCES. THE LEARNED CIT(A) CONF IRMED THE ACTION OF THE A.O. WHEREAS THE INCOME TAX APPELLATE TRIBUNAL ALLAHABA D BENCH VIDE HIS DECISION IN I.T.A. NO. 335/ALLD/2008 DATED 18/03/2009 VIDE PARA 7 TO 1 0 CONFIRMED THE VIEWS OF THE AUTHORITY BELOW BUT ALLOWED THE EXPENDITURE OF RS.1 000/- PER MONTH ON ACCOUNT OF SALARY OF CHOWKIDAR OR OTHERWISE OUT OF SAID RECEIPT OF RS .35000/-. THE A.O. LEVIED A PENALTY U/S 271(1)(C) OF THE ACT FOR THE REASON THE ASSESSE E HAS FURNISHED INACCURATE PARTICULARS OF INCOME. THE LEARNED CIT(A) CONFIRMED THE ACTION OF A.O. 4. I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED T HE FACTS OF THE CASE. THERE IS NO DISPUTE TO THE FACT THE ASSESSEE HAD RECEIVED RS.35 000/- FROM NEIGHBOURS FROM EXTENDING SERVICE SUCH AS PLOUGHING THEIR FIELD FROM ASSESSEE S TRACTORS GIVING KNOW HOW FOR AGRICULTURAL CROPS AND SUPERVISION ETC. THIS IS EV IDENT FROM PAGE 7 OF INCOME TAX --3-- APPELLATE TRIBUNALS ORDER IN ASSESSEES OWN CASE I N QUANTUM IN I.T.A. NO. 335/ALLD/2008 DATED 18/03/2009. THIS EXPLANATION W AS SUBMITTED BY THE ASSESSEE BEFORE THE A.O. IN PENALTY PROCEEDING AS WELL. THEREFORE THERE IS NOTHING ON RECORD THAT THE ASSESSEE HAD CONCEALED ANY PARTICULARS OF HIS INCOM E OR HAS FURNISHED INACCURATE PARTICULARS OF SUCH INCOME. THEREFORE IN THE CIRCU MSTANCES AND FACTS OF THE CASE PENALTY U/S 271(1)(C) OF THE ACT CAN NOT BE LEVIED AND THE A.O. IS DIRECTED TO CANCEL THE PENALTY SO LEVIED. THEREFORE ORDER OF THE LEARNED CIT(A) IS R EVERSED ACCORDINGLY. THUS ALL THE GROUNDS OF THE ASSESSEE ARE ALLOWED. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IN ITA NO.14 5/A/2011 IS ALLOWED. 6. THE ORDER IS PRONOUNCED IN OPEN COURT ON 29.11.2 011. SD/- (B.P. JAIN) ACCOUNTANT MEMBER DATE: 29.11.2011 COPY TO:- 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ITAT ALLD. BY ORDER (A.S.) ASSISTANT REGISTRAR