Shri Jignesh Venilal Koralwala, Bharuch v. The Income tax Officer,Ward-1,, Bharuch

ITA 447/AHD/2013 | 2006-2007
Pronouncement Date: 30-04-2015 | Result: Allowed

Appeal Details

RSA Number 44720514 RSA 2013
Assessee PAN AEFPK2897C
Bench Ahmedabad
Appeal Number ITA 447/AHD/2013
Duration Of Justice 2 year(s) 2 month(s) 13 day(s)
Appellant Shri Jignesh Venilal Koralwala, Bharuch
Respondent The Income tax Officer,Ward-1,, Bharuch
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2015
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 30-04-2015
Date Of Final Hearing 22-04-2015
Next Hearing Date 22-04-2015
Assessment Year 2006-2007
Appeal Filed On 15-02-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR ACCOUNTANT MEMBER AND SHRI S.S. GODARA JUDICIAL MEMBER ITA NO . 447 /AHD/ 2013 A. Y. 200 8 - 0 9 SHRI JIGNESH VENILAL KORALWALA AA - 1 SHUBHAM BUNGALOWS NR. NARMADA PROJECT COLONY BHARUCH. PAN: AEFPK 2897C VS ITO BHARUCH. (APPELLANT) (RESPONDENT) REVENUE BY : S HRI P.L. KUREEL SR. D.R. ASSESSEE(S) BY : SHRI MUKUND BAKSHI / DATE OF HEARING : 22 / 0 4 /201 5 / DATE OF PRONOUNCEMENT: 30 / 0 4 /201 5 / O R D E R PER SHRI S.S. GODARA JUDICIAL MEMBER TH IS ASSESSEE S APPEAL FOR A.Y. 200 6 - 0 7 ARISE S FROM ORDER OF THE CI T(A) - I BARODA DATED 30.11 . 201 2 PASSED I N CASE NO . CAB/1 - 91/ 201 2 - 1 3 CONFIRMING PENALTY OF RS.70 LAC IN PROCEEDINGS U/S. 271(1)(C ) OF THE INCOME TAX ACT IN SHORT THE ACT . 2. FACTS OF THE CASE ARE IN A VERY NARROW COMPASS. THE ASSESSEE INDIVIDUAL IS IN CIVI L CONSTRUCTION BUSINESS. HE FILED RETURN U/S.139(1) ADMITTING INCOME OF RS.6 93 540/ - . THE DEPARTMENT CONDUCTED A SEARCH IN HIS CASE AND ASSOCIATE S CASE ON 17.1.2007 ITA NO. 447 /AHD/201 3 SHRI JIGNESH VENILAL KORALWALA . FOR A.Y. 200 6 - 07 - 2 - SEIZING ALLEGED INCRIMINATING MATERIAL. THIS CULMINATED IN ISSUANCE OF A SECTION 153A NOT ICE. THE ASSESSEE FILED HIS RETURN IN PURSUANCE ON 27.12.2007 ENHANCING HIS INCOME TO RS.2 13 42 040/ - . THIS INCLUDED ADDITIONAL INCOME OF RS.2 06 48 692/ - . THE ASSESSING OFFICER IN THE COURSE OF SCRUTINY REFER TO THE ALLEGED SEIZED MATERIAL REVEALING ONMO NEY PAYMENTS OF RS.16 46 970/ - IN SALE INSTANCES OF RESIDENTIAL UNITS IN ASSESSMENT YEARS 2003 - 04 2004 - 05 AND 2006 - 07. THE LAST ONE IS THE IMPUGNED ASSESSMENT YEAR. THE CORRESPONDING ONMONEY SUM HEREIN READS RS.1 85 000/ - . THE ASSESSEE HAD ALREADY DECLARE D A SUM OF RS.18 500/ - IN THE LATTER RETURN. THE ASSESSING OFFICER ADDED THE BALANCE SUM AS WELL IN HIS INCOME RETURNED BY REJECTING THE ASSESSEE S PLEA OF TREATING ONLY 8 TO 10 PER CENT THEREOF AS THE NET PROFITS. AND ALSO INITIATED PENALTY PROCEEDINGS U/ S.271(1)(C) ALLEGING CONCEALMENT AND FURNISHING OF INACCURATE PARTICULARS QUA THE ADDITIONAL INCOME ABOVESAID. 3. THE ASSESSEE PREFERRED AN APPEAL IN QUANTUM PROCEEDINGS. THE CIT(A) IN HIS ORDER DATED 4.1.2010 DIRECTED THE ASSESSING OFFICER TO TREAT ONL Y A SUM OF RS.27 750/ - AS ONMONEY ADITION @15% OF THE GROSS AMOUNT (SUPRA). THE QUANTUM PROCEEDINGS ATTAINED FINALITY ACCORDINGLY. 4. THE ASSESSEE STRONGLY CONTESTED PENALTY NOTICE IN THE RELEVANT PROCEEDINGS. HE SOUGHT SECTION 271(1)(C) EXPLANATION 5 IMM UNITY. THE ASSESSING OFFICER IN PENALTY ORDER DATED 29.3.2011 HELD THAT ADDITIONAL INCOME (SUPRA) HAD NOT BEEN VOLUNTARILY DISCLOSED THERE ITA NO. 447 /AHD/201 3 SHRI JIGNESH VENILAL KORALWALA . FOR A.Y. 200 6 - 07 - 3 - WAS NO JUSTIFICATION REGARDING ONMONEY ADDITION IN QUESTION AND TREATED THE ASSESSEE S CASE AS THAT OF CONCEALMENT L EADING TO FURNISHING OF INACCURATE PARTICULARS OF INCOME. THE IMPUGNED PENALTY OF RS.70 LAC STOOD IMPOSED ACCORDINGLY MINIMUM RATE. 5. THE CIT(A) HAS CONFIRMED THE ASSESSING OFFICER S ACTION IMPOSING THE IMPUGNED PENALTY. 6. WE HAVE HEARD BOTH SIDES AN D GONE THROUGH THE CASE FILE. RELEVANT FACTS STAND NARRATED HEREINABOVE. THE AUTHORITIES BELOW TREAT ASSESSEE S ADDITIONAL INCOME DECLARED OF RS.2 06 48 692/ - AS A CASE OF CONCEALMENT AND FURNISHING OF INACCURATE PARTICULARS OF INCOME U/S.271(1)(C) OF THE ACT. THE ASSESSEE REITERATES THE SAME IN ITS GROUNDS OF APPEAL. THE REVENUE STRONGLY SUPPORTS THE CIT(A) S ORDER. WE FIND THAT THE HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF KIRIT DAYABHAI PATEL VS. ACIT IN TAX APPEAL NO.1181 1182 TO 1185 OF 2010 DE CIDED ON 3.12.2014 HOLDS THAT IN CASE THE ADDITIONAL INCOME IS DISCLOSED IN FURTHERANCE TO A SECTION 153A NOTICE THE SAME HAS TO BE TREATED AS A ONE FILED U/S.139(1) AND UNLESS ANY ADDITION THEREUPON IS MADE IT IS NOT A CASE OF PENALTY U/S.271(1)(C) OF T HE ACT. ADMITTEDLY FACTS OF THE PRESENT CASE INDICATE THAT SUCH INCOME ASSESSED OVER AND ABOVE ONE DECLARED POST 153A NOTICE IS AN ADDITION OF RS.27 750/ - (SUPRA). THEREFORE WE FOLLOW THE JURISDICTIONAL HIGH COURT AND DELETE THE IMPUGNED PENALTY. COMING TO THE AFORESAID RESIDUAL ADDITION THE CASE FILE REVEALS THAT THE ASSESSEE HAD ALREADY DISCLOSED ITS ALL NECESSARY DETAILS SO AS TO ITA NO. 447 /AHD/201 3 SHRI JIGNESH VENILAL KORALWALA . FOR A.Y. 200 6 - 07 - 4 - QUALIFY FOR IMMUNITY U/S.271(1)(C) EXPLANATION 5. THE ASSESSEE S GROUNDS CHALLENGING IMPOSITION OF THE IMPUGNED PENALTY SUCCE ED. 7. THE ASSESSEE S APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON THIS DAY THE 30TH APRIL 201 5 AT AHMEDABAD. SD/ - SD/ - ( PRAMOD KUMAR ) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 30 / 0 4 / 20 1 5 PRABHAT KR. KESARWANI SR. P . S . / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - III AHMEDABAD 5. / DR ITAT AHMEDABAD 6. / GUARD FILE . / BY ORDER / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD