Shri Manibhai J. Patel,, Ahmedabad v. The Income Tax Officer, Ward-3,, Gandhinagar

ITA 3410/AHD/2014 | 2008-2009
Pronouncement Date: 30-11-2017 | Result: Allowed

Appeal Details

RSA Number 341020514 RSA 2014
Assessee PAN ACNPP2663H
Bench Ahmedabad
Appeal Number ITA 3410/AHD/2014
Duration Of Justice 2 year(s) 11 month(s) 12 day(s)
Appellant Shri Manibhai J. Patel,, Ahmedabad
Respondent The Income Tax Officer, Ward-3,, Gandhinagar
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2017
Appeal Filed By Assessee
Tags 3410
Order Result Allowed
Bench Allotted A
Tribunal Order Date 30-11-2017
Assessment Year 2008-2009
Appeal Filed On 18-12-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD EKUHK CKSJM EKUHK CKSJM EKUHK CKSJM EKUHK CKSJM BEFORE SHRI MAHAVIR PRASAD JUDICIAL MEMBER AND SHRI MANISH BORAD ACCOUNTANT MEMBER I.T.A. NO.3410/AHD/2014 ( / ASSESSMENT YEAR : 2008-09) MANIBHAI J. PATEL SHOP NO.11 GROUND FLOOR SUMAN CITY SECTION 11 GANDHINAGAR VS. ITO WARD 3 GANDHINAGAR ! PAN/GIR NO. : ACNPP 2663 H ( ' / APPELLANT ) .. ( #' RESPONDENT ) '$ APPELLANT BY : --NONE-- #'%$ / RESPONDENT BY : SHRI JAYANT JHAVERI SR. D.R. & '(%)* / DATE OF HEARING 29/11/2017 + -.%)* / DATE OF PRONOUNCEMENT 30/11/2017 / O R D E R PER MAHAVIR PRASAD JUDICIAL MEMBER : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-GANDHINAGAR AP PEAL NO. CIT(A)GNR/241/2013-14 VIDE ORDER DATED 10/09/2014 F OR THE ASSESSMENT YEAR (AY) 2008-09 ON THE FOLLOWING GROU NDS: THE LD. CIT(A) ERRED ON FACT AND IN LAWS IN SUSTAI NING THE PENALTY LEVIED UNDER THE PROVISION OF SECTION 271(1)(C) OF THE ACT @300% ON ASSESSED INCOME TAX; WHICH IS VERY EXCESSIVE. ITA NO.3410/AHD /2014 MANIBHAI J. PATEL VS. ITO ASST.YEAR 2008-09 - 2 - 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- ASSESSEE IS ENGAGED IN THE BUSINESS OF ZEROX AND C OPIES. THE DETAILS FURNISHED WITH THE RETURN OF INCOME AND DET AILS/INFORMATION FURNISHED DURING THE COURSE OF ASSESSMENT PROCEEDIN GS HAVE BEEN SCRUTINIZED. THE POINTS MENTIONED BELOW EMERGED FOR CONSIDERATION/DISALLOWANCE. 2.2 THERE WAS A INFORMATION WITH THE INCOME TAX DEPARTM ENT THAT THE ASSESSEE HAS DEPOSITED CASH OF RS.12 18 650/- IN TH E INDIAN OVERSEAS BANK DURING THE ACCOUNTING PERIOD 01/04/2007 TO 31/ 03/2008. THE ASSESSEE WAS GIVEN SHOWN-CAUSE NOTICE VIDE THIS OFF ICE LETTER DATED 25.11.2010 TO SHOW CAUSE WHY RS.12 18 650/- SHOULD NOT BE ADDED TO TAXABLE INCOME. THE ASSESSEE WAS SPECIFICALLY REQUE STED TO EXPLAIN THE SOURCE OF CASH DEPOSITED OF RS.12 18 650/- ALONGWIT H SUPPORTING DOCUMENTARY EVIDENCES THE RELEVANT PORTION IS REPRO DUCED AS UNDER: 'IT IS SEEN FROM THE COPY OF ACCOUNT OF INDIAN OVER SEAS BANK A SUM OF RS.12 18 650/- HAVE BEEN CASH DEPOSITED DURI NG THE ACCOUNTING YEAR 01/04/2007 TO 30/03/2008. YOU ARE REQUESTED TO FURNISH SOURCE/SOURCES OF CASH DEPOSITED/INVESTED WITH SUPP ORTING DOCUMENTARY EVIDENCES AND CASH FLOW STATEMENT SHOWING THE CASH ON HAND AND DEPOSITED. YOU MAY PLEASE SATISFACTORILY EXPLAIN EA CH ENTRY OF CASH ITA NO.3410/AHD /2014 MANIBHAI J. PATEL VS. ITO ASST.YEAR 2008-09 - 3 - DEPOSITED IN BANK. YOU ARE THEREFORE REQUESTED TO PLEASE ATTEND THE OFFICE OF THE UNDERSIGNED PERSONALLY OR THROUGH YOUR AUTHORIZED REPRESENTATIVE WITHIN A WEEK OF RECEIPT OF THIS LET TER OR ON THE DATE AND TIME GIVEN BELOW. THIS IS VERY IMPORTANT ASPECT OF YOUR ASSESSMENT PR OCEEDINGS AND THEREFORE PLEASE COMPLY WITHOUT FAIL. IT MAY PLEASE BE NOTED THAT IF NOTHING IS HEARD ON OR BEFORE THE DATE AND TIME GIV EN BELOW IT WILL BE PRESUMED THAT YOU HAVE NOTHING TO SAY IN THIS REGAR D AND CASH DEPOSITED OF RS.12 18 650/- CHARGED TO INCOME TAX AS INCOME W ITHIN THE MEANING OF SECTION 68 OF INCOME TAX ACT FOR THE PREVIOUS YEAR 01/04/07 TO 31/03/08.' 2.3 IN RESPONSE TO THE ABOVE LETTER ASSESSEE FILED IT REPLY AND RELEVANT PORTION IS REPRODUCED AS UNDER: '4. CLARIFICATION IN RESPECT OF CASH DEPOSITED WITH IOB BANK ACCOUNT DURING THE YEAR THERE HAD BEEN SUM CASH DEPOSITED AND SAME WERE UTILIZED FOR INVESTMENT IN SHARES. THERE HAD BEEN S UM INCOME FROM THE SHARES TRANSACTIONS WHICH WERE NOT CONSIDERED DUE T O ACCOUNTANT'S MISTAKE INEXPERIENCE AND LACK OF KNOWLEDGE. THE INV ESTMENT/CASH DEPOSITED IN BANK ACCOUNT WERE OUT OF AGRICULTURE I NCOME AND OTHER INCOME OF THE YEAR. HENCE THE SAME HAS BEEN CONSIDE RED AND REVISED STATEMENT OF TOTAL INCOME/RETURN ENCLOSED HEREWITH IN SUBSEQUENT YEAR ALSO REVISED RETURN FILED AND PAID INCOME TAX ACCO RDINGLY. 2.4 THE ISSUE WAS DISCUSSED WITH THE ASSESSEE DURIN G THE COURSE OF ASSESSMENT PROCEEDINGS AND THE ASSESSEE HIMSELF COM ES FORWARD AND ITA NO.3410/AHD /2014 MANIBHAI J. PATEL VS. ITO ASST.YEAR 2008-09 - 4 - REPORTED THAT CASH DEPOSITED IN BANK FOR WHICH NO P ROPER DETAILS AVAILABLE HENCE OFFERED RS.10 34 662/- AS MISCELLANEOUS INCOM E IN REVISED STATEMENT OF TOTAL INCOME WITH A VIEW TO BUY A MENT AL PEACE. ASSESSEE HIMSELF HAS OFFERED THE CASH OF RS. 10 34 662/- AS MISCELLANEOUS INCOME. FOR REMAINING INCOME IT IS MENTIONED IN PARA 4 AS A BOVE THAT SUM CASH DEPOSITED HAD BEEN UTILIZED FOR INVESTMENT IN SHARE S. IT PROVES THAT HE HAS ACCEPTED THE ABOVE CASH DEPOSITED OF RS.12 18 650/- IN BANK. ACCORDINGLY RS.12 18 650/- IS TREATED AS UNEXPLAIN ED CASH CREDIT WITHIN THE MEANING OF SECTION 68 OF THE IT ACT AND ADDED T O THE TAXABLE INCOME OF THE ASSESSEE AND FINALLY ADDITION OF RS.12 18 65 0/- WERE MADE AGAINST THE ASSESSEE. 3. AGAINST THE SAID ORDER ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A). LD. CIT(A) CONFIRMED 300% PENALTY. 4. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMP UGNED ORDER. NONE APPEAR ON BEHALF OF THE ASSESSEE THEREFORE WE DISPOSING THIS MATTER IN THE ABSENCE OF AUTHORITIES REPRESENTATIVE/ASSESS EE. 5. IN OUR CONSIDERED OPINION THOUGH ASSESSEE FAILE D TO ATTAIN HIS MATTER BEFORE THE LD. CIT(A) AND LD. CIT(A) PASSED AN EX PARTE ORDER. THEREFORE IN THE INTEREST OF THE JUSTICE WE SET AS IDE THE ORDER OF THE LD. CIT(A) AND REMIT THIS MATTER BACK TO THE FILE OF TH E LD. CIT(A) WHO WILL ITA NO.3410/AHD /2014 MANIBHAI J. PATEL VS. ITO ASST.YEAR 2008-09 - 5 - DECIDE THIS MATTER AFRESH AFTER GIVING AN OPPORTUNI TY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO CO-OPERA TE WITH THE LD. CIT(A) FOR DISPOSAL OF THIS MATTER. 6. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS A LLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 30/11/2017 SD/- SD/- EKUHK CKSJM EKUHK CKSJM EKUHK CKSJM EKUHK CKSJM EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN YS[KK LNL; U;KF;D LNL; YS[KK LNL; U ;KF;D LNL; YS[KK LNL; U ;KF;D LNL; YS[KK LNL; U ;KF;D LNL; ( MANISH BORAD ) (MAHAVIR PRASA D) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 30/11/2017 PRITI YADAV SR. PS !'#$ %$' COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 012) & 3) / CONCERNED CIT 4. & 3) 45 / THE CIT(A)-GANDHINAGAR 5. 678 )'12 *12. 0 / DR ITAT AHMEDABAD 6. 89:( GUARD FILE. & ' / BY ORDER #6) ) //TRUE COPY// (/' )* ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD