Sh. Narinder Kumar Jain,, Delhi v. ITO, New Delhi

ITA 3499/DEL/2010 | 2003-2004
Pronouncement Date: 28-01-2011 | Result: Dismissed

Appeal Details

RSA Number 349920114 RSA 2010
Assessee PAN ACBPJ5628G
Bench Delhi
Appeal Number ITA 3499/DEL/2010
Duration Of Justice 6 month(s) 12 day(s)
Appellant Sh. Narinder Kumar Jain,, Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 28-01-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 28-01-2011
Date Of Final Hearing 20-01-2011
Next Hearing Date 20-01-2011
Assessment Year 2003-2004
Appeal Filed On 16-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH F BENCH F BENCH F BENCH F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA VICE PRESIDENT AND SHRI C.L.SETHI JUDICIAL MEMBER SHRI C.L.SETHI JUDICIAL MEMBER SHRI C.L.SETHI JUDICIAL MEMBER SHRI C.L.SETHI JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO. 3499/DEL/2010 3499/DEL/2010 3499/DEL/2010 3499/DEL/2010 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2003 2003 2003 2003 - -- - 04 0404 04 SHRI NARINDER KUMAR JAIN SHRI NARINDER KUMAR JAIN SHRI NARINDER KUMAR JAIN SHRI NARINDER KUMAR JAIN 4145 GALI SHAHTARA 4145 GALI SHAHTARA 4145 GALI SHAHTARA 4145 GALI SHAHTARA AJMERE G AJMERE G AJMERE G AJMERE GATE ATE ATE ATE DELHI DELHI DELHI DELHI 110 006. 110 006. 110 006. 110 006. PAN NO. PAN NO. PAN NO. PAN NO.ACBPJ5628G. ACBPJ5628G. ACBPJ5628G. ACBPJ5628G. VS. VS. VS. VS. INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER WARD WARD WARD WARD- -- -28(1) 28(1) 28(1) 28(1) NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.P.GANGULI ADVOCATE. RESPONDENT BY : SHRI H.K.LAL SR.DR. ORDER ORDER ORDER ORDER PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI J J J JM : M : M : M : THE ASSESSEE IS IN APPEAL AGAINST THE ORDER DATED 14.6.2 010 PASSED BY LEARNED CIT(A) CONFIRMING THE PENALTY AMOUN TING TO `67 016/- LEVIED BY THE AO U/S 271(1)(C) OF THE INCO ME-TAX ACT 1961 (THE ACT) FOR THE AY 2003-04. 2. IN THIS CASE UPON RECEIPT OF SPECIAL INFORMATION F ROM THE INVESTIGATION WING THAT ASSESSEE HAD RECEIVED AN ACCOMMO DATION ENTRY OF `2 LAKHS IN THE NATURE OF GIFT FROM ONE SH RI SANJAY GUPTA THE AO HAD ISSUED NOTICE U/S 148 OF THE ACT. IN THE COUR SE OF ASSESSMENT PROCEEDINGS THE ASSESSEE WAS REQUESTED TO SUBSTANTIATE THE CLAIM OF GIFT OF `2 LAKHS ALLEGEDLY RECEIVED FROM SHRI SANJAY GUPTA BY FURNISHING EVIDENCE OF THE SO CALLED DONORS IDENTITY CREDITWO RTHINESS AND GENUINENESS OF THE TRANSACTION. AT THIS STAGE THE ASSESSE E SURRENDERED THE GIFT BY SUBMITTING THAT HE WAS NOT AWA RE ABOUT THE PRESENT ADDRESS OF THE DONOR AND HE WAS NOT IN TOUCH WI TH THE DONOR. ITA-3499/DEL/2010 2 THE AO INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) O F THE ACT AND ULTIMATELY LEVIED THE PENALTY UPON THE ASSESSEE. 3. ON AN APPEAL LEARNED CIT(A) CONFIRMED THE PENAL TY. THE CIT(A) HELD THAT IT IS NOT A CASE WHERE THE ASSESSEE VOLUNTARI LY DECLARED THE GIFT OF `2 LAKHS AS INCOME BUT THE ADDITION WAS MADE B Y THE AO ON ASSESSEES FAILURE TO SUBSTANTIATE THE CLAIM OF A PURPORTE D GIFT. THE CIT(A) FURTHER HELD THAT THE DISCLOSURE WAS NOT VOLUNT ARY BUT MADE BY THE ASSESSEE UNDER COMPELLING CIRCUMSTANCES. HENCE THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND HAVE CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IN THE PRESENT CASE THE ALLEGED BOGUS GIFT OF `2 LAKHS WAS NOT OFFERED TO TAX BY THE A SSESSEE IN THE ORIGINAL RETURN OF INCOME. THERE WAS AN INVESTIGATIO N CARRIED OUT BY THE INVESTIGATION WING OF THE DEPARTMENT DURING THE COURSE OF WHICH IT WAS UNEARTHED THAT THE GIFT WAS NOT GENUINE BUT WAS I N THE NATURE OF AN ACCOMMODATION ENTRY. THE AO THEREFORE INITIAT ED PROCEEDINGS U/S 148 OF THE ACT AGAINST THE ASSESSEE AS HE HAS REASON TO BE LIEVE THAT INCOME OF `2 LAKHS HAD ESCAPED ASSESSMENT. IT IS ONLY IN THE CASE OF REASSESSMENT PROCEEDINGS THAT ASSESSEE SURRENDERED THE GIFT A S HE WAS NOT IN A POSITION TO SUBSTANTIATE THE GIFT AS GENUIN E. IT IS THUS A CASE WHERE THE ASSESSEE HAS SURRENDERED THE GIFT AFTER IN CRIMINATING MATERIALS WERE COLLECTED BY THE DEPARTMENT AGAINST TH E ASSESSEE. WE THEREFORE HOLD THAT IT IS NOT A VOLUNTARY BONA-FIDE SURRENDER OF INCOME BUT GIFT HAS BEEN SURRENDERED AFTER THE SAME WAS DETECT ED BY THE DEPARTMENT AS NOT GENUINE. IN THE LIGHT OF THESE FAC TS THE VARIOUS DECISIONS RELIED UPON BY THE ASSESSEE ARE OF NO HELP TO T HE ASSESSEE INASMUCH AS IN THOSE CASES THE DISCLOSURE WAS VOLUNTARY B EFORE ANY DETECTION MADE BY THE DEPARTMENT. THEREFORE THE A SSESSEES ITA-3499/DEL/2010 3 EXPLANATION IS NOT BONA-FIDE AND LEARNED CIT(A) HAS R IGHTLY CONFIRMED THE PENALTY LEVIED BY THE AO. 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 28 TH JANUARY 2011. SD/- SD/- (G.E.VEERABHADRAPPA (G.E.VEERABHADRAPPA (G.E.VEERABHADRAPPA (G.E.VEERABHADRAPPA ) )) ) (C.L.SETHI (C.L.SETHI (C.L.SETHI (C.L.SETHI ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED : 28.01.2011. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR ITA-3499/DEL/2010 4