Shri Devang Kishorbhai Jhaveri, Ahmedabad v. The Income tax Officer,Ward-5(2),, Ahmedabad

ITA 2216/AHD/2011 | 2008-2009
Pronouncement Date: 29-04-2015 | Result: Dismissed

Appeal Details

RSA Number 221620514 RSA 2011
Assessee PAN ABLPJ6074F
Bench Ahmedabad
Appeal Number ITA 2216/AHD/2011
Duration Of Justice 3 year(s) 7 month(s) 23 day(s)
Appellant Shri Devang Kishorbhai Jhaveri, Ahmedabad
Respondent The Income tax Officer,Ward-5(2),, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-04-2015
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 29-04-2015
Date Of Final Hearing 27-03-2015
Next Hearing Date 27-03-2015
Assessment Year 2008-2009
Appeal Filed On 05-09-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD .. BEFORE SHRI N.S. SAINI ACCOUNTANT MEMBER AND SHRI KUL BHARAT JUDICIAL MEMBER ./ I.T.A. NO.2216/AHD/2011 ( / ASSESSMENT YEAR : 2008-09) DEVANG KISHORBHAI JHAVERI 107 PRENATIRTH-II B/H.BODIWALA PARK SOMESHWAR RAW HOUSE SATELLITE AHMEDBAD / VS. THE ITO WARD-5(2) AHMEDABAD ./ ./ PAN/GIR NO. : ABLPJ 6074 F ( # / APPELLANT ) .. ( $% # / RESPONDENT ) #& / APPELLANT BY : -NONE- $% # '& / RESPONDENT BY : SHRI M.K. SINGH SR.DR ()'* / DATE OF HEARING 27/03/2015 + -.'* / DATE OF PRONOUNCEMENT 29/04/2015 / O R D E R PER SHRI KUL BHARAT JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-XI AHMEDABA D (CIT(A) IN SHORT) DATED 25/07/2011 PERTAINING TO ASSESSMENT Y EAR (AY) 2008-09. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL:- 1.1. THE ORDER PASSED U/S.250 ON 25.7.2011 FOR AY 2008-0 9 BY CIT(A)-XI ABAD UPHOLDING PARTLY THE PENALTY LEVIED ITA NO.2216 /AH D/2011 DEVANG KISHORBHAI JHAVERI VS. ITO ASST.YEAR 2008-09 - 2 - U/S.271(1)(C) BY AO IS WHOLLY ILLEGAL UNLAWFUL AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 1.2. THE LD.CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND OR ON FACTS IN NOT CONSIDERING FULLY AND PROPERLY THE EXPLANATIONS FUR NISHED AND THE EVIDENCE PRODUCED BY THE APPELLANT. 2.1. THE LD.CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND OR ON FACTS IN UPHOLDING THAT THE APPELLANT HAD FURNISHED INACCURA TE PARTICULARS OF INCOME TO THE EXTENT OF RS.13 61 825 /- BEING CASH DEPOSITS MADE IN THE BANK ACCOUNT. 2.2. THAT IN THE FACTS AND CIRCUMSTNACES OF THE CAS E THE LD.CIT(A) OUGHT NOT TO HAVE UPHELD THE PENALTY OF RS.5 21 340 TO THE EXTENT OF CASH DEPOSITS TO THE EXTENT OF RS.13 61 825/- MA DE IN THE BANK ACCOUNT. 2.3. THE LD.CIT(A) HAS FAILED TO APPRECIATE THAT TH E APPELLANT HAD OFFERED RS.13 22 825/- TO BUY MENTAL PEACE IN VIEW OF THE ILL HEALTH AND MEDICAL ADVICE. THE APPELLANT HAD OFFER ED THE SAID CASH DEPOSITS BEFORE DETECTION BY AO AS UNEXPLAINED AND MADE FULL AND TRUE DISCLOSURE VOLUNTARILY IN GOOD FAITH. THEREFORE THE CONTRARY OBSERVATIONS MADE BY CIT(A) ARE NOT JUSTIF IED. IT IS THEREFORE PRAYED THAT THE PENALTY OF RS.5 21 340 LEVIED BY THE AO SHOULD BE CANCELLED. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143( 3) OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 22/03/2010. WHILE FRAMING THE ASSESSMENT ORD ER THE ASSESSING OFFICER (AO) MADE ADDITION BY TREATING THE SHORT-TE RM CAPITAL GAIN AS BUSINESS INCOME OF RS.2 65 286/- AND ALSO MADE ADDI TION OF RS.13 61 825/- BY INVOKING THE PROVISIONS OF SECTIO N 68 OF THE ACT AND ISSUED A SHOW-CAUSE NOTICE FOR INITIATION OF PENALT Y PROCEEDINGS U/S.271(1)(C) OF THE ACT. SUBSEQUENTLY THE AO PAS SED A PENALTY ORDER ITA NO.2216 /AH D/2011 DEVANG KISHORBHAI JHAVERI VS. ITO ASST.YEAR 2008-09 - 3 - U/S.271(1)(C) OF THE ACT DATED 27/09/2010; THEREBY THE AO TREATING THE UNEXPLAINED CASH CREDIT OF RS.13 61 825/- AS CONCEA LED INCOME AND LEVIED A PENALTY OF RS.5 34 591/-. AGAINST THIS T HE ASSESSEE FILED AN APPEAL BEFORE THE LD.CIT(A) WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE SUSTAINED THE PENALTY ON CONCEALED IN COME TO THE EXTENT OF RS.13 22 825/-. AGGRIEVED BY THE ORDER OF THE LD.C IT(A) THE ASSESSEE IS NOW IN APPEAL BEFORE US. 3. NONE APPEARED ON BEHALF OF THE APPELLANT-ASSESSE E DESPITE SERVICE OF NOTICE FOR HEARING SENT THROUGH REGISTERED POST. THE LD.SR.DR SUPPORTED THE ORDER OF THE AUTHORITIES BELOW AND SU BMITTED THAT THE ASSESSEE DID NOT FURNISH ANY EVIDENCE IN SUPPORT OF THE CASH CREDIT OF RS.13 61 825/-. 4. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE O RDERS OF THE AUTHORITIES BELOW. THE CONTENTION OF THE ASSESSEE IS THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE HAD OFFERED FOR TAXATION OF RS.13 22 865/- AS UNEXPLAINED CASH CREDIT TO BUY PEACE OF MIND AND THE OFFER WAS SUBJECT TO THE CONDITION THAT NO PENA LTY SHALL BE LEVIED. THERE IS NO MATERIAL AVAILABLE ON RECORD THAT THE A O ACCEPTED THE OFFER AND AS SUCH THE ASSESSEE WAS PREVENTED FROM FURNISH ING THE EVIDENCE WITH REGARD TO CASH CREDITS. IN THE ABSENCE OF SUCH MAT ERIAL WE DO NOT SEE ANY ITA NO.2216 /AH D/2011 DEVANG KISHORBHAI JHAVERI VS. ITO ASST.YEAR 2008-09 - 4 - REASON TO INTERFERE WITH THE ORDER OF LD.CIT(A). T HUS THE GROUNDS RAISED IN THE APPEAL ARE HEREBY DISMISSED. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE COURT ON WEDNESDAY THE 29 TH DAY OF APRIL 2015 AT AHMEDABAD. SD/- SD/- ( .. ) ( ) ( N.S. SAINI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 29/ 04 /2015 2*.. (.../ T.C. NAIR SR. PS !'#$%&' &$ / COPY OF THE ORDER FORWARDED TO : 1. # / THE APPELLANT 2. $% # / THE RESPONDENT. 3. 345 6 / CONCERNED CIT 4. 6 ( ) / THE CIT(A)-XI AHMEDABAD 5. 7(8 $45 *45. 3 / DR ITAT AHMEDABAD 6. 8:;<) / GUARD FILE. ! / BY ORDER %7$ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD