Asst. Commissioner of Income Tax, Circle-5(1),, Hyderabad v. M/s Lalit Electronics,, Hyderabad

ITA 1790/HYD/2013 | 2009-2010
Pronouncement Date: 25-04-2014 | Result: Dismissed

Appeal Details

RSA Number 179022514 RSA 2013
Bench Hyderabad
Appeal Number ITA 1790/HYD/2013
Duration Of Justice 4 month(s) 2 day(s)
Appellant Asst. Commissioner of Income Tax, Circle-5(1),, Hyderabad
Respondent M/s Lalit Electronics,, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 25-04-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 25-04-2014
Assessment Year 2009-2010
Appeal Filed On 23-12-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY JUDICIAL MEMBER ITA.NO.1790/HYD/2013 ASSESSMENT YEAR 2009-2010 ACIT CIRCLE 5(1) HYDERABAD VS. M/S. LALIT ELECTRONICS HYDERABAD PAN AACFL-4918-J (APPELLANT) (RESPONDENT) FOR REVENUE : MR. B. YADAGIRI FOR ASSESSEE : -NONE- DATE OF HEARING : 22.04.2014 DATE OF PRONOUNCEMENT : 25.04.2014 ORDER PER B. RAMAKOTAIAH A.M. THIS IS REVENUE APPEAL AGAINST THE ORDER OF THE C IT(A)- V HYDERABAD DATED 16.09.2013 FOR THE A.Y. 2009-201 0. WHEN THE CASE WAS CALLED UPON NONE APPEARED ON BEHALF OF TH E ASSESSEE. LEARNED D.R. WAS HEARD AND THE APPEAL WAS DECIDED E X-PARTE ASSESSEE. THE ISSUE IN THIS APPEAL IS WITH REFERENC E TO CANCELLATION OF PENALTY UNDER SECTION 271(1)(C) OF RS.10 81 170/-. 2. BRIEFLY STATED FACTS ARE THAT A SURVEY OPERATIO N WAS CONDUCTED IN THE ASSESSEES BUSINESS PREMISES ON 26 .03.2009 AND FEW LOOSE SLIPS WERE FOUND WITH AMOUNTS WRITTEN ON THEM. ASSESSEE FIRM HAS A TURNOVER OF LESS THAN RS. 2 CRORES BUT I N THE COURSE OF SURVEY THE FIRMS PARTNER AGREED FOR ADDITIONAL IN COME OF RS.35 LAKHS FOR A.Y. 2009-2010. ACCORDINGLY ASSESSEE DEC LARED INCOME OF RS.53 08 314/- AND FILED THE RETURN OF INCOME FOR T HE IMPUGNED ASSESSMENT YEAR AND A.O. IN THE COURSE OF SCRUTINY ASSESSMENT ACCEPTED THE INCOME DECLARED. HOWEVER ON THE REASO N THAT ADDITIONAL INCOME WAS DECLARED DURING THE COURSE OF SURVEY PENALTY 2 ITA.NO.1790/HYD/2013 M/S. LALIT ELECTRONICS HYDERABAD PROCEEDINGS UNDER SECTION 271(1)(C) WERE INITIATED AND PENALTY WAS LEVIED. 3. LD. CIT(A) AFTER CONSIDERING THE DETAILED SUBMI SSIONS OF THE ASSESSEE DELETED THE PENALTY HOLDING THAT (A) T HAT IT IS NOT THE CASE OF FURNISHING INACCURATE PARTICULARS OF INCOME AS PARTICULARS OF INCOME HAVE BEEN DULY FURNISHED INCLUDING THE SURRE NDERED AMOUNT. (B) THE PENALTY ORDER WHICH IMPOSED PENALTY HAS NO MENTION OF WHAT KIND OF CONCEALMENT THE ASSESSEE HAS CONCEALED AND NO ADDITION HAS BEEN MADE IN THE COURSE OF SCRUTINY. (C) NO COGENT MATERIAL HAS BEEN BROUGHT ON RECORD BY THE A.O. TO PROVE THAT INCOME ADMITTED VOLUNTARILY BY THE ASSESSEE REPRESENTS CONCEALED IN COME. (D) ASSESSEES STATEMENT THAT HE HAS DECLARED VOLUNTARI LY TO BUY PEACE WITH THE DEPARTMENT HAS NOT BEEN COUNTERED AND (E) A.O. HAS NOT BROUGHT OUT ANY CORROBORATIVE EVIDENCE/PROOF THAT A SSESSEE HAS IN FACT CONCEALED PARTICULARS OF INCOME. LD. CIT(A) RE LYING ON THE PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT I N THE CASE OF RELIANCE PETRO PRODUCTS P. LTD. 322 ITR 158 (SC) AN D ALSO DECISION OF THE DELHI HIGH COURT IN THE CASE OF CIT VS. MOHANDA S HASSA NAND 141 ITR 203 (DEL.) EXAMINED THE ISSUE BOTH FACTUALL Y AND LEGALLY AND HELD THAT THERE IS NEITHER CONCEALMENT OF INCOME NO R FURNISHING OF INACCURATE PARTICULARS. ACCORDINGLY HELD THAT PENA LTY WAS NOT WARRANTED ON THE FACTS OF THE CASE. 4. LEARNED D.R. ARGUED THAT BUT FOR THE SURVEY CON DUCTED ASSESSEE COULD NOT HAVE DISCLOSED INCOME. THEREFORE IT HAS TO BE CONSIDERED AS CONCEALED INCOME. HE RELIED ON THE OR DERS OF THE A.O. 5. CONSIDERING THE FACTS OF THE CASE WE AGREE WIT H THE LD. CIT(A). IN FACT EVEN THOUGH SURVEY WAS CONDUCTED I N THE COURSE OF THE YEAR THE ASSESSEE HAD FILED RETURN DISCLOSING THE INCOMES CORRECTLY. AS RIGHTLY HELD BY THE HONBLE SUPREME C OURT IN THE CASE OF RELIANCE PETRO PRODUCTS P. LTD. 322 ITR 148 NO PENALTY CAN BE IMPOSED UNLESS THE CONDITIONS STIPULATED IN THE SAI D PROVISIONS ARE TALLIED AND UNAMBIGUOUSLY SATISFIED. ASSESSEE WAS E XPOSED DURING 3 ITA.NO.1790/HYD/2013 M/S. LALIT ELECTRONICS HYDERABAD THE SURVEY MAY BE IT WOULD NOT HAVE DISCLOSED THE INCOME BUT FOR THE SURVEY. HOWEVER THAT ITSELF CANNOT BE A BASIS FOR LEVY OF PENALTY AS PROVISIONS OF SECTION 271(1)(C) ARE TO BE CONSTR UED STRICTLY. SINCE THE ASSESSEE HAS ADMITTED THE INCOME IN THE RETURN FILED AND A.O. ACCEPTED THE SAME THERE IS NOTHING WHICH CAN BE CO NSIDERED AS INCOME THAT IS CONCEALED OR INCOME FOR WHICH INACCU RATE PARTICULARS ARE FURNISHED. UNLESS IT IS FOUND THAT THERE IS ACT UALLY CONCEALMENT OR NON-DISCLOSURE OF PARTICULARS OF INCOME PENALTY CANNOT BE IMPOSED. THERE IS NO SUCH CONCEALMENT OR NON-DISCLO SURE AS THE ASSESSEE HAS MADE COMPLETE DISCLOSURE IN THE INCOME TAX RETURN AND PROVISIONS OF SECTION 271(1)(C) CAN ONLY BE CONSIDE RED ON THE BASIS OF THE INCOME TAX RETURN ALONE. MAY BE EXPLANATION 5 A ND 5A AND EXPLANATION 4 MAY EXTEND THE SCOPE OF CONCEALED INC OME IDENTIFIED IN THE SEARCHES BUT THERE IS NO SUCH PROVISION/ EXP LANATION U/S 271(1)(C) FOR THE PROCEEDINGS UNDER SECTION 133A S O AS TO CONSIDER THE ADMITTED INCOME IN THE COURSE OF SURVEY FOLLOWE D BY FILING RETURN OF INCOME IN DUE COURSE AS CONCEALED INCOME. IN VI EW OF THIS THERE IS NO MERIT IN THE REVENUES CONTENTIONS. ACCORDING LY GROUNDS OF THE REVENUE ARE REJECTED. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.04.2014. SD/- SD/- (SAKTIJIT DEY) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD DATED 25 TH APRIL 2014 VBP/- 4 ITA.NO.1790/HYD/2013 M/S. LALIT ELECTRONICS HYDERABAD COPY TO : 1. ACIT CIRCLE 5(1) HYDERABAD 2. M/S. LALIT ELECTRONICS 4-4-320/4 GIRIRAJ LANE SULTAN BAZAR HYDERABAD 3. CIT(A)-V HYDERABAD 4. CIT-IV HYDERABAD 5. D.R. ITAT B BENCH HYDERABAD.