Shri Somabhai Ambalal Prajapati,, Ahmedabad v. The ACIT, Central Circle 2(2),, Ahmedabad

ITA 2148/AHD/2013 | 2010-2011
Pronouncement Date: 29-09-2016 | Result: Dismissed

Appeal Details

RSA Number 214820514 RSA 2013
Assessee PAN ABAPP7646Q
Bench Ahmedabad
Appeal Number ITA 2148/AHD/2013
Duration Of Justice 3 year(s) 1 month(s) 9 day(s)
Appellant Shri Somabhai Ambalal Prajapati,, Ahmedabad
Respondent The ACIT, Central Circle 2(2),, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-09-2016
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 29-09-2016
Date Of Final Hearing 12-07-2016
Next Hearing Date 12-07-2016
Assessment Year 2010-2011
Appeal Filed On 19-08-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH AHMEDABAD BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER ./ ITA NO. 2148/AHD/2013 / ASSESSMENT YEAR : 2010-11 SOMABHAI AMBAALAL PRAJAPATI PROP. OF AAI SHRI KHODIYAR BRICKS KHODAL BHUVAN KHODIYAR KRUPA BUNGALOW NEW VADAJ AHMEDABAD PAN : ABAPP 7646 Q VS ACIT CENTRAL CIRCLE 2(2) AHMEDABAD / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI P.F. JAIN AR REVENUE BY : SHRI ADITYA SHUKLA SR DR / DATE OF HEARING : 12/07/2016 / DATE OF PRONOUNCEMENT: 29/09/2016 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-III AHMEDABAD DATED 27.06.2013 FOR AY 2010-11 CONFIRMING PENALTY OF RS.18 000/- I MPOSED BY THE AO U/S. 271AAA OF THE INCOME-TAX ACT 1961 (HEREINAFTER REF ERRED TO AS THE ACT). 2. BRIEF FACTS ARE IN ASSESSEES CASE A DIFFEREN CE OF EXCESS UNACCOUNTED STOCK OF RS.1 80 000/- OF BRICKS WAS FOUND AT THE P REMISES OF THE ASSESSEE. ADDITION IN THIS BEHALF WAS ACCEPTED. THE AO INITI ATED PENALTY U/S 271AAA OF THE ACT. THE ASSESSEE CONTENDED THAT IN ORDER TO CO-OPERATE WITH THE DEPARTMENT AND TO AVOID LITIGATION THE ABOVE I NCOME WAS ACCEPTED. THEREFORE ITS CASE WAS NOT COVERED U/S 271AAA OF T HE ACT. THE AO HOWEVER LEVIED THE PENALTY. AGGRIEVED THE ASSESS EE PREFERRED FIRST APPEAL AND IN FIRST APPEAL THE LD. CIT(A) HELD THAT THERE WAS NO BONA FIDES IN THE CONDUCT OF THE ASSESSEE AND THE EXCESS STOCK WAS DE TECTED DURING THE COURSE OF SEARCH WHICH HAS BEEN ACCEPTED BY THE ASSESSEE. THE PENALTY WAS ACCORDINGLY CONFIRMED RELYING ON THE FOLLOWING JUDG MENTS:- (I) SURESH CHANDRA MITTAL 251 ITR 9 (SC) (II) RAJ KUMAR CHOURASIYA VS. CIT 288 ITR 329 (III) ZOOM COMMUNICATIONS PVT LTD 327 ITR 510 (DELHI) SMC-ITA NO. 2148/AHD/2013 SHRI SOMABHAI AMBAALAL PRAJAPATI VS. ACIT AY : 2010-11 2 3. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE ARGUMENTS AND RELIED ON THE JUDGMENT OF HONBLE GUJARAT HIGH COURT IN TH E CASE OF TARABEN RAMANBHAI PATEL AND ANOTHER VS. ITO IN S.C.A. NO.73 06 OF 1988 REPORTED IN (1995) 215 ITR 323 (GUJ.). 4. THE LD. DR ON THE OTHER HAND CONTENDS THAT THE RE IS NO MERIT IN THE EXPLANATION OF THE ASSESSEE THAT THE ADDITION WAS A CCEPTED TO AVOID LITIGATION AND TO BUY PEACE. IT WAS ONLY BECAUSE OF THE DEPART MENTAL ACTION THAT THE EXCESS STOCK WAS FOUND. FURTHER RELIANCE IS PLACED ON THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF MAK DATA P. LT D. VS. CIT REPORTED (2013) 358 ITR 593 FOR THE PROPOSITION THAT PENALT Y IS CIVIL LIABILITY AND ASSESSEES OWN ADMISSION CONSTITUTES ADMISSION OF L IABILITY. THE FACTS IN THE CASE OF TARABEN RAMANBHAI PATEL (SUPRA) ARE TOTALLY DIFFERENT AS IN THAT CASE IT WAS IN THE CONTEXT OF SECTION 271(1)(A) AND NOT SECTION 271AAA. 5. I HAVE HEARD THE RIVAL CONTENTIONS PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE LOWER AUT HORITIES. THE EXCESS STOCK IN QUESTION HAS BEEN ACCEPTED BY THE ASSESSEE AND NOT DISCLOSED IN THE RETURN OF INCOME. IN VIEW THEREOF I SEE NO INFIRMI TY IN THE ORDER OF LD. CIT(A) IN CONFIRMING THE PENALTY OF RS.18 000/- IMP OSED BY THE AO U/S 271AAA. RESPECTFULLY FOLLOWING THE JUDGMENT OF HON BLE SUPREME COURT IN THE CASE OF MAK DATA P. LTD. (SUPRA) THE PENALT Y IS CONFIRMED AND THE ASSESSEES APPEAL IS DISMISSED. 6. IN THE RESULT ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 29 TH SEPTEMBER 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 29/09/2016 *BIJU T. SMC-ITA NO. 2148/AHD/2013 SHRI SOMABHAI AMBAALAL PRAJAPATI VS. ACIT AY : 2010-11 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. / DR ITAT AHMEDABAD 6. / GUARD FILE . / BY ORDER TRUE COPY / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD