M/s Chetak Infrastructure Ltd., Pune v. I.T.O. Ward 1(1) Pune,

ITA 156/PUN/2009 | 2003-2004
Pronouncement Date: 27-10-2010 | Result: Allowed

Appeal Details

RSA Number 15624514 RSA 2009
Assessee PAN AACCC3710A
Bench Pune
Appeal Number ITA 156/PUN/2009
Duration Of Justice 1 year(s) 1 month(s) 15 day(s)
Appellant M/s Chetak Infrastructure Ltd., Pune
Respondent I.T.O. Ward 1(1) Pune,
Appeal Type Income Tax Appeal
Pronouncement Date 27-10-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 27-10-2010
Assessment Year 2003-2004
Appeal Filed On 12-09-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI B. RAMAKOTAIAH AM I.T.A. NO. 156/PN/2009 : A.Y. 2003-04 M/S. CHETAK INFRASTRUCTURE LTD. 13 KAMLA REGENCY OPP. PETROL PUMP FC ROAD PUNE-411 004 PAN AACCC3710 A APPELLANT VS. I.T.O. WARD 1(1) PUNE RESPONDENT APPELLANT BY : MS. NEETA DADLANI RESPONDENT BY: SHRI ABHAY DAMLE ORDER PER SHAILENDRA KUMAR YADAV JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-I PUNE DATED 22-10-2008 FOR A.Y . 2003-04 ON THE POINT OF CONFIRMATION OF PENALTY LEVIED U/S 271(1)(C) OF THE ACT. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED ITS RETURN DECLARING INCOME OF RS. 50 540/-. THE CASE WAS SELECTED FOR SCRUTINY AND ASSESSING OFFICE R COMPLETED THE ASSESSMENT U/S 143(3) DETERMINING THE TOTAL INCOME AT RS. 16 18 780/-. THE A.O INITIATED PENALTY PROCEEDINGS IN RESPECT OF ADDITIONS MADE ON ACCOUNT OF UNPROVED LIABILITIES WHICH WERE CLAIMED TO BE MADE IN CASH. A PERUSAL OF THE MATERIAL SHOWED ITA NO. 156/PN/09 CHETAK INFRASTRUCTURE A.Y. 2003-04 2 THAT IN RESPECT OF AMOUNT OF INCOME ENHANCED OF RS. 4 25 052/- THE PRESUMPTION OF CONCEALMENT AS CONTAINED IN EXPLANATION 1 TO SECTION 271(1)(C) OF THE ACT APPLIED AND THE ASSESSEE FAILED TO REBUT THIS PRESUMPTION OF CONCEALMENT BY ADDUCING RELEVANT RELIABLE AND COGENT MATERIAL. FOR NOT SHOWING THE ENHANCED AMOUNT IN RETURN OF INCOME THE ASSESSEE HAS FAILED TO OFFER ANY COGENT EXPLANATION. THE CI T(A) THEREFORE HELD THAT IN RESPECT OF THE AMOUNT OF IN COME ENHANCED BY DISALLOWANCE OF UNPROVED AND NON- EXISTENT LIABILITIES IN CONSEQUENCE OF THE APPELLAT E ORDER ALL FACTS MATERIAL TO COMPUTATION OF TOTAL IN COME WERE NOT DISCLOSED BY THE ASSESSEE. THE CI(A) THEREFORE HELD THAT IN RESPECT OF ENHANCEMENT MADE AT RS. 4 25 052/- THE ASSESSEE HAD CONCEALED HIS INCOM E AND FURNISHED INACCURATE PARTICULARS OF INCOME IN RESPECT OF AMOUNT OF DISALLOWANCE ON ACCOUNT OF UNPROVED LIABILITIES BY WAY OF CASH PAYMENTS. THEREFORE THE CIT(A) HELD TO BE A FIT CASE FOR IMPOSITION OF PENALTY U/S 271(1)(C) OF THE ACT FOR CONCEALMENT OF INCOME AS WELL AS FURNISHING INACCURATE PARTICULARS OF INCOME IN RESPECT OF ENHANCEMENT OF INCOME OF RS. 4 25 052/-. UNDER THES E CIRCUMSTANCES THE CIT(A) IMPOSED A MINIMUM PENALTY ITA NO. 156/PN/09 CHETAK INFRASTRUCTURE A.Y. 2003-04 3 @ 100% OF THE TAX SOUGHT TO BE EVADED ON THE ENHANCED INCOME. 4. THE LEARNED AR POINTED OUT THAT THE ADDITIONS IN THE ORDER U/S 143(3) HAS BEEN SET ASIDE AND IS REMANDED BACK TO THE FILE OF THE A.O VIDE ORDER OF THE TRIBUNAL DATED 19-5-2010 IN ITA NO. 343/PN/2008 TO ADJUDICATE THE ISSUE AFRESH AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE FIN D THAT THE VERY BASIS FOR IMPOSING THE IMPUGNED PENAL TY IS THE ENHANCEMENT OF INCOME BY RS. 4 25 052/- AND THE ISSUE WITH RESPECT TO ENHANCEMENT HAS BEEN REMITTED BACK TO THE FILE OF THE A.O BY THE I.T.A.T . VIDE ITS ORDER DATED 19-5-2010 IN ITA NO. 343/PN/2008. SINCE THE ISSUE ON ENHANCEMENT OF INCOME IS SET ASI DE BY THE TRIBUNAL VIDE ITS ORDER DATED 19-5-2010 THE ISSUE WITH RESPECT TO PENALTY ALSO REQUIRES TO BE S ET ASIDE TO THE FILE OF THE A.O TO BE DECIDED AFRESH I N ACCORDANCE WITH LAW. WE THEREFORE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE MAT TER TO THE FILE OF THE A.O FOR DECIDING THE ISSUE AFRES H IN ACCORDANCE WITH LAW AFTER PROVIDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. ITA NO. 156/PN/09 CHETAK INFRASTRUCTURE A.Y. 2003-04 4 3. IN THE RESULT THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH DAY OF OCTOBER 2010. SD/- SD/- (B. RAMAKOTAIAH) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED THE 27 TH OCTOBER 2010 ANKAM COPY FORWARDED TO: (1) ASSESSEE (2) DEPARTMENT (3) CIT (A) -I PUNE (4) CIT I PUNE (5) THE D.R. ITAT 'A' PUNE BENCH PUNE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL PUNE BENCHES PUNE