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

ITA 2149/AHD/2013 | 2010-2011
Pronouncement Date: 29-09-2016 | Result: Dismissed

Appeal Details

RSA Number 214920514 RSA 2013
Assessee PAN AIOPP0311K
Bench Ahmedabad
Appeal Number ITA 2149/AHD/2013
Duration Of Justice 3 year(s) 1 month(s) 9 day(s)
Appellant Shri Pankaj Somabhai 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. 2149/AHD/2013 / ASSESSMENT YEAR : 2010-11 PANKAJ SOMABHAI PRAJAPATI PROP. OF AAI SHRI KHODIYAR BRICKS KHODAL BHUVAN KHODIYAR KRUPA BUNGALOW NEW VADAJ AHMEDABAD PAN : AIOPP 0311 K 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 24.06.2013 FOR AY 2010-11 CONFIRMING PENALTY OF RS.67 000/- 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 INCRIMINAT ING MATERIAL IN THE FORM OF LOOSE PAPER SHOWING UNDISCLOSED INTEREST INCOME OF RS.6 70 000/- WAS FOUND. THE SAID UNDISCLOSED INCOME WAS ADDED DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THE ADDITION WAS ADMITTED BY THE ASSESSEE. PENALTY PROCEEDINGS U/S 271AAA WERE INITIATED WHER E THE ASSESSEE CONTENDED THAT IT WAS A DUMP PAPER AND THE ADDITION WAS ACCEPTED IN ORDER TO CO-OPERATE WITH THE DEPARTMENT AND TO AVOID LITI GATION. THE LD. AO HOWEVER IMPOSED THE PENALTY. AGGRIEVED THE ASSES SEE PREFERRED FIRST APPEAL WHEREIN THE LD. CIT(A) OBSERVED THAT THE AS SESSEE HAD HIMSELF ACCEPTED THAT THE UNRECORDED SUMS WERE ADVANCED BY HIM AND INTEREST THEREFROM WAS NOT OFFERED TO TAX; THEREFORE THE AS SESSEES CASE WAS COVERED SMC-ITA NO. 2149/AHD/2013 PANKAJ SOMABHAI PRAJAPATI VS ACIT AY : 2010-11 2 U/S 271AAA OF THE ACT AND THE PENALTY WAS CONFIRMED . LD. CIT(A) WHILE CONFIRMING THE PENALTY RELIED ON THE FOLLOWING JUD GMENTS:- (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) 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 IT CLEARLY EMERGES FROM THE RECORD THAT THE ASSESSEE HAD ADVANCED UNRECORDE D AMOUNT ON WHICH INTEREST WAS EARNED WHICH WAS NOT OFFERED IN THE RE TURN OF INCOME. THE ADDITION HAS BEEN ACCEPTED BY THE ASSESSEE. THERE IS NO SUBSTANCE IN THE PLEA THAT THE ADDITION WAS ACCEPTED IN ORDER TO CO- OPERATE WITH THE DEPARTMENT AND TO AVOID LITIGATION. IT WAS ONLY BEC AUSE OF THE SEARCH THAT THE INCRIMINATING MATERIAL CAME INTO THE POSSESSION OF THE DEPARTMENT. FURTHER RELIANCE IS PLACED ON THE JUDGMENT OF HON BLE SUPREME COURT IN THE CASE OF MAK DATA P. LTD. VS. CIT REPORTED (2013) 3 58 ITR 593 FOR THE PROPOSITION THAT PENALTY IS CIVIL LIABILITY AND ASS ESSEES OWN ADMISSION CONSTITUTES ADMISSION OF LIABILITY. THE FACTS IN T HE CASE OF TARABEN RAMANBHAI PATEL (SUPRA) ARE TOTALLY DIFFERENT AS I N 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. FROM THE RECORD IT CLEARLY EMERGES THAT THE ASSESSEE HAS EA RNED UNACCOUNTED INTEREST INCOME WHICH WAS NOT OFFERED IN THE INCOME-TAX RETU RN. THEREFORE I SEE NO INFIRMITY IN THE ORDER OF LD. CIT(A) IN CONFIRMING THE PENALTY. RESPECTFULLY SMC-ITA NO. 2149/AHD/2013 PANKAJ SOMABHAI PRAJAPATI VS ACIT AY : 2010-11 3 FOLLOWING THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF MAK DATA P. LTD. (SUPRA) THE PENALTY IS CONFIRMED AND THE A SSESSEES 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. / 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