Shri Dilesh R Raval, RAJKOT-GUJARAT v. The Income Tax Officer, Ward 1 (1), JUNAGADH

ITA 23/RJT/2011 | 1996-1997
Pronouncement Date: 18-03-2011 | Result: Allowed

Appeal Details

RSA Number 2324914 RSA 2011
Assessee PAN ABMPR5176K
Bench Rajkot
Appeal Number ITA 23/RJT/2011
Duration Of Justice 1 month(s) 17 day(s)
Appellant Shri Dilesh R Raval, RAJKOT-GUJARAT
Respondent The Income Tax Officer, Ward 1 (1), JUNAGADH
Appeal Type Income Tax Appeal
Pronouncement Date 18-03-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 18-03-2011
Assessment Year 1996-1997
Appeal Filed On 31-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH SMC RAJKOT BEFORE SHRI A.L. GEHLOT (AM) I.T.A. NO.23/RJT/2011 (ASSESSMENT YEAR 1996-97) DILESHBHAI R RAVAL VS THE ITO WD.1(1) PROP ALPHA SCIENCE CLASSES JUNAGADH JUNAGADH PAN : ABMPR5176K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DR ADHIA RESPONDENT BY : SHRI AVINASH KUMAR O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT(A)- IV RAJKOT DATED 29-10-2010 FOR THE ASSESSMENT YEAR 1996-97. THE GROUND RAISED IN THE APPEAL IS IN RESPECT OF LEVY OF PENAL TY U/S 271(1)(C) OF THE ACT. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS RUNNING A TUITION CLASS. A SURVEY U/S 133A WAS CARRIED OUT ON 19-10-1995. T HE ASSESSEE ADMITTED IN THE STATEMENT RECORDED AN ADDITIONAL INCOME OF RS.2 LAK H IN ADDITION TO THE INCOME OF RS.50 000 WORKED OUT UPTO THE DATE OF SURVEY. WHIL E FINALIZING THE ASSESSMENT AN ADDITION OF RS.2 LAKH WAS MADE ON ACCOUNT OF DIS CLOSURE MADE BY THE ASSESSEE AT THE TIME OF SURVEY U/S 133A. THE ASSES SEE FILED APPEAL BEFORE CIT(A) WHO HAS CONFIRMED THE ADDITION. AGGRIEVED B Y THE ORDER OF CIT(A) THE ASSESSEE PREFERRED APPEAL BEFORE ITAT. THE ITAT AL LOWED RELIEF OF RS.75 000 AND THE ADDITION WAS THEREFORE RESTRICTED TO RS.1 2 5 000. ASSESSING OFFICER LEVIED PENALTY ON THE AMOUNT OF RS.1 25 000 SUSTAINED BY T HE ITAT. THE MINIMUM PENALTY U/S 271(1)(C) WAS IMPOSED AT RS.42 000. TH E CIT(A) CONFIRMED THE PENALTY ON THE GROUND THAT THE ASSESSEE HAS FURNISH ED INACCURATE PARTICULARS OF INCOME. ITA NO.23/RJT/2011 2 3. THE LD.AR SUBMITTED THAT THE SURVEY WAS CARRIED OUT ON 19-10-1995 AND THE DEPARTMENT GOT DECLARATION FROM THE ASSESSEE FO R FUTURE SIX MONTHS INCOME FROM OCTOBER 1995 TO 31 ST MARCH 1996 WHICH IS APPARENTLY INCORRECT. THE LD .AR SUBMITTED THAT MERELY ON ESTIMATION OF INCOME PENAL TY U/S 271(1)(C) IS NOT LEVIABLE. THE LD. AR IN SUPPORT OF HIS CONTENTION HAS RELIED UPON THE DECISION OF ITAT RAJKOT BENCH IN THE CASE OF ACIT VS M/S SHIVS HAKTI HANDLING & TRANSPORT CO ORDER DATED 15-10-2007 IN ITA NO.475/RJT/2006. THE LD.DR RELIED UPON THE ORDER OF CIT(A). 4. I FIND THAT THE SURVEY HAS TAKEN PLACE ON 15-10- 1995 WHEREAS THE FINANCIAL YEAR HAS ENDED ON 31-03-1996. THE DEPARTMENT GOT T HE DISCLOSURE FOR ADVANCE INCOME FROM OCTOBER 1995 TO 31-03-1996. THE ITAT VIDE ITA NO.546/RJT/2003 ORDER DATED 14 TH MARCH 2004 WHILE DECIDING THE QUANTUM MATTER HAS OBSERVED THAT THE ASSESSING OFFICER HAS RIGHTLY ESTIMATED TH E INCOME OF THE ASSESSEE. HOWEVER THIS ESTIMATION HAD NOT BEEN SUBSTANTIATED WITH CONCRETE DETAILS OF OMISSIONS AND DEFECTS NOTICED AT THE TIME OF SURVEY . RATHER IT IS PURELY BASED ON REPLY TO QUESTION NO.12 OF THE ASSESSEES STATEMENT . THE ITAT WAS OF THE OPINION THAT THE ADDITION WAS ON HIGHER SIDE. THER EFORE ON ACCOUNT OF FAIRNESS AND EQUITY THE ADDITION TO THE EXTENT OF RS.1 25 00 0 WAS SUSTAINED AND ALLOWED RELIEF OF RS.75 000. FROM THE QUANTUM ORDER OF THE ITAT I FIND THAT IT IS MERELY A CASE OF ESTIMATION OF THE INCOME AND IN THE LIGHT O F THE ORDER OF THE ITAT RAJKOT BENCH IN ITA NO.475/RJT/2006 I AM OF THE VIEW THAT THE PENALTY IS NOT LEVIABLE. 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18-03-2011. SD/- (A.L. GEHLOT) ACCOUNTANT MEMBER RAJKOT DT : 18 TH MARCH 2011 PK/- ITA NO.23/RJT/2011 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)-IV RAJKOT 4. THE CIT-III RAJKOT 5. THE DR (TRUE COPY) BY ORDER ASSTT.REGISTRAR ITAT RAJKOT