Shri Bhavin Mahendra Dagli,, Bhavnagar v. The ACIT, Circle-2,, Bhavnagar

ITA 2574/AHD/2013 | 2007-2008
Pronouncement Date: 20-10-2016 | Result: Partly Allowed

Appeal Details

RSA Number 257420514 RSA 2013
Assessee PAN ADYPD0074C
Bench Ahmedabad
Appeal Number ITA 2574/AHD/2013
Duration Of Justice 2 year(s) 11 month(s) 20 day(s)
Appellant Shri Bhavin Mahendra Dagli,, Bhavnagar
Respondent The ACIT, Circle-2,, Bhavnagar
Appeal Type Income Tax Appeal
Pronouncement Date 20-10-2016
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 20-10-2016
Date Of Final Hearing 17-10-2016
Next Hearing Date 17-10-2016
Assessment Year 2007-2008
Appeal Filed On 31-10-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENC H (BEFORE SHRI N.K. BILLAIYA ACCOUNTANT MEMBER & SHRI S. S. GODARA JUDICIAL MEMBER) ITA. NO: 2574/AHD/2013 (ASSESSMENT YEAR: 2007-08) SHRI BHAVIN MAHENDRA DAGLI 509 KAHAN JYOT OPP: DIGMBER JAIN MANDIR SONGADH BHAVNAGAR-364250 V/S ACIT CIRCLE-2 BHAVNAGAR (APPELLANT) (RESPONDENT) PAN: ADYPD0074C APPELLANT BY : SHRI P. M. MEHTA A.R. RESPONDENT BY: SHRI PRADIPKUMAR MAJUMDAR SR. D.R . ( )/ ORDER DATE OF HEARING : 17 -10-201 6 DATE OF PRONOUNCEMENT : 20 -10-2016 PER N.K. BILLAIYA ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF LD. CIT(A)-I AHMEDABAD DATED 20.09.2013 PERTAINING TO A.Y. 2007- 08. ITA NO. 2574 /AHD/2013 . A.Y. 2007-0 8 2 2. THE SOLE GRIEVANCE OF THE ASSESSEE RELATES TO THE L EVY OF PENALTY U/S. 271(1)(C) OF THE ACT. 3. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE ASSESS MENT ORDER DATED 31.12.2009 MADE U/S. 143(3) OF THE ACT. THE ASSESSM ENT WAS COMPLETED BY MAKING FOLLOWING ADDITIONS/DISALLOWANCES:- SR. NO. NATURE OF ADDITION AMOUNT (RS.) 1 ON ACCOUNT OF NSC MATURITY 1 14 072/- 2 ON ACCOUNT OF INTEREST INCOME ON VARIOUS S/B ACCOUNT INCLUDING FDR 4 07 238/- 3 ON ACCOUNT OF ACCRUED INTEREST ON HDFC BANK 12 18 981/- 4 ON ACCOUNT OF ACCRUED INTEREST INCOME IN VIEW OF PROVISIONS U/S. 64(II) 4 84 734/- 5 ON ACCOUNT OF INTEREST INCOME 19 22 500/- 6 ON ACCOUNT OF UNEXPLAINED CREDITS IN THE VARIOUS BANK ACCOUNTS. 34 323/- 4. THE QUANTUM ADDITIONS WERE AGITATED BEFORE THE FIRS T APPELLATE AUTHORITY AND THE LD. CIT(A) GAVE FOLLOWING RELIEF THE ASSESS EE:- SR. NO. NATURE OF ADDITION AMOUNT (RS.) 1 ON ACCOUNT OF NSC MATURITY 60 000/- 2 ON ACCOUNT OF INTEREST INCOME ON VARIOUS S/B ACCOUNT 3 24 934/- 3 ON ACCOUNT OF ACCRUED INTEREST ON HDFC BONDS 10 40 000/- 4 ON ACCOUNT OF ACCRUED INTEREST INCOME U/S. 64(II) 4 84 734/- 5 ON ACCOUNT OF INTEREST INCOME 19 22 500/- ITA NO. 2574 /AHD/2013 . A.Y. 2007-0 8 3 5. TAKING A LEAF OUT OF THE FINDINGS OF THE FIRST APPE LLATE AUTHORITY THE A.O. LEVIED PENALTY U/S. 271(1)(C) OF THE ACT AT RS. 1 1 1 640/-. 6. AGGRIEVED BY THIS THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) BUT WITHOUT ANY SUCCESS. 7. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE VEHEMEN TLY STATED THAT THE LEVY OF PENALTY IS UNJUSTIFIED AS NEITHER THE ASSESSEE H AS FILED INACCURATE PARTICULARS OF INCOME NOR HE HAS CONCEALED ANY INCO ME. PER CONTRA THE LD. D.R. STRONGLY SUPPORTED THE FINDINGS OF THE REVENUE AUTHORITIES. 8. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORD ERS OF THE AUTHORITIES BELOW. A PERUSAL OF THE ORDER OF THE FIRST APPELLAT E AUTHORITY IN QUANTUM PROCEEDINGS SHOWS THAT INTEREST ON NSC RS. 54 072/- WAS NEITHER SHOWN BY THE ASSESSEE ON MATURITY OF NSC NOR AN ACCRUAL BASI S. SIMILARLY INTEREST ON SAVINGS ACCOUNT OF RS. 64 304/- WAS ADMITTED BY THE ASSESSEE AS NOT SHOWN IN THE RETURN OF INCOME. TO THIS EXTENT LEVY OF PE NALTY IS JUSTIFIED. THE A.O. IS DIRECTED TO RE-COMPUTE THE PENALTY ON THE ADDITI ON OF RS. 1 18 376/-. 9. SO FAR AS THE INTEREST ADDITION ON HDFC BONDS AMOUN TING TO RS. 21 32 840/- IS CONCERNED WE FIND THAT THE ASSESSEE HAD COMPUTE D THE SIMPLE RATE OF INTEREST INSTEAD OF COMPOUND RATE OF INTEREST. THIS MAY BE CONSIDERED AS AN INADVERTENT MISTAKE AND LEVY OF PENALTY IS NOT JUST IFIED. WE ACCORDINGLY ITA NO. 2574 /AHD/2013 . A.Y. 2007-0 8 4 MODIFY THE FINDINGS OF THE LD. CIT(A) AND DIRECT TH E A.O. TO RESTRICT THE PENALTY TO THE ADDITION OF RS. 1 18 376/-. 10. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 20 - 10- 2016. SD/- SD/- (S.S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR. ITAT AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT AHME DABAD