Shri Hemant A. Patel,, Baroda v. The ACIT, Circle-4,, Baroda

ITA 2937/AHD/2014 | 2010-2011
Pronouncement Date: 29-11-2017 | Result: Allowed

Appeal Details

RSA Number 293720514 RSA 2014
Assessee PAN ACAPP7652B
Bench Ahmedabad
Appeal Number ITA 2937/AHD/2014
Duration Of Justice 3 year(s) 22 day(s)
Appellant Shri Hemant A. Patel,, Baroda
Respondent The ACIT, Circle-4,, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-11-2017
Assessment Year 2010-2011
Appeal Filed On 07-11-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD .. BEFORE SHRI S.S. GODARA JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA ACCOUNTANT MEMBER ./ I.T.A. NO.2937/AHD/2014 ( / ASSESSMENT YEAR : 2010-11 SHRI HEMANT A.PATEL 4A INDRAPRASTH SOCIETY RACE COURSE CIRCLE BARODA 390 007 / VS. THE ACIT CIRCLE-4 BARODA $ ./ ./ PAN/GIR NO. : ACAPP 7652 B ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : NONE ($'*) / RESPONDENT BY : SHRI ADITYA SHUKLA DR + *- / DATE OF HEARING 10/11/2017 ./0*- / DATE OF PRONOUNCEMENT 29 / 11 /2017 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL FILED AT THE INSTANCE OF THE ASSESSEE IS AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS )-III BARODA [CIT(A) IN SHORT] DATED 29/09/2014 RELEVANT TO ASSESSMENT YEAR (AY) 2009-10 UPHOLDING THE ASSESSING OFFICERS ACTION IM POSING PENALTY OF RS.5 16 250/- IN PROCEEDINGS UNDER S.271(1)(C) OF THE INCOME TAX ACT 1961. ITA NO. 2937/AH D/2014 SHRI HEMAN A.PATEL VS. ACIT ASST.YEAR 2010-11 - 2 - 2. BRIEFLY STATED THE RETURN OF THE ASSESSEE WAS S UBJECTED TO SCRUTINY ASSESSMENT IN THE AY 2010-11. IN THE COURSE OF THE SCRUTINY ASSESSMENT THE ASSESSING OFFICER (AO) OBSERVED THAT CERTAIN EX PENSES IN THE NATURE OF BORE EXPENSES AND FENCING EXPENSES CLAIMED UNDER THE LONG TERM CAPITAL GAINS (LTCGS) COULD NOT BE SUPPORTED. SIMI LARLY BROKERAGE EXPENSES ON SALE OF LAND ALSO COULD NOT BE CORROBOR ATED. THE CAPITAL GAINS WAS ACCORDINGLY RE-QUANTIFIED AFTER DISALLOWA NCE TOWARDS CLAIM OF SUCH EXPENDITURE OF VARIED NATURE. THE PENALTY OF RS.5 16 250/- WAS IMPOSED ON THE AFORESAID AGGREGATE DISALLOWANCE OF RS.15 48 726/-. 3. THE CIT(A) CONFIRMED THE AFORESAID ACTION OF THE AO IN FIRST APPEAL. 4. AGGRIEVED THE ASSESSEE KNOCKED THE DOOR OF THE TRIBUNAL. 5. NONE ATTENDED FOR THE ASSESSEE. THE MATTER IS A CCORDINGLY PROCEEDED EX-PARTE . 6. WITH THE ASSISTANCE OF THE LD.DR IN THE COURSE O F HEARING WE FIND THAT ASSESSEE HAS CLAIMED BROKERAGE EXPENSES OF RS. 5 87 643/- AND RS.6 23 107/- BEING 2% OF THE SALE COST. LIKEWISE BORE EXPENSES OF RS.1 50 000/- WAS CLAIMED AND SOME EXPENSES WERE CL AIMED TOWARDS LEVELLING & BOUNDARY WALL EXPENSES AND FRAGMENTING COST. WE NOTICE ITA NO. 2937/AH D/2014 SHRI HEMAN A.PATEL VS. ACIT ASST.YEAR 2010-11 - 3 - THAT THE ASSESSEE HAS GIVEN SUBMISSIONS BEFORE THE CIT(A) AND POINTED OUT THAT ASSESSEE HAD PURCHASED THE LAND IN THE YEA R 2000 AND AFTER PURCHASING THE LAND THE SAME WAS PUT FOR AGRICULTUR AL PURPOSES AND ACCORDINGLY BORE EXPENSES AND BOUNDARY WALL EXPENSE S LEVELING & FRAGMENTING WERE BOUND TO INCUR. THE BROKERAGE EXP ENSES @ 2% WAS ALSO IN TUNE WITH THE NORMAL BUSINESS PRACTICES. WE FIND SOME MERIT IN THE CONTENTION OF THE ASSESSEE PLACED BEFORE THE CI T(A) FROM THE PERSPECTIVE OF PENALTY PROCEEDINGS. CONSIDERING TH E QUANTUM OF INCOME OF RS.237.11 LAKHS DECLARED BY THE ASSESSEE AND HAV ING REGARD TO THE AVERMENTS MADE BEFORE THE CIT(A) WE FIND THAT THE CASE OF THE ASSESSEE IS NOT TOTALLY DEVOID OF MERIT. DOUBTFUL CIRCUMSTA NCES FOR EXACTING DETAILS DO EXIST BUT ARE OFFSET BY MITIGATING CIRCU MSTANCES IN FAVOUR OF ASSESSEE. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLO WED EX-PARTE . THIS ORDER PRONOUNCED IN OPEN COURT ON 29/ 11 /2017 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 29/ 11 /2017 4..+ .+../ T.C. NAIR SR. PS ITA NO. 2937/AH D/2014 SHRI HEMAN A.PATEL VS. ACIT ASST.YEAR 2010-11 - 4 - !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)-II AHMEDABAD 5. 9:-+67 670 5 / DR ITAT AHMEDABAD 6. < / GUARD FILE. / BY ORDER (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD 1. DATE OF DICTATION .. 28.11.17(DICTATION-PAD 6-PA GES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 29.11.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.29.11.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 29.11.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER