ACIT, Alwar v. M/s ASCENT BUILD HOME DEVELOPERS P LTD., Alwar

ITA 658/JPR/2011 | 2006-2007
Pronouncement Date: 28-11-2014 | Result: Dismissed

Appeal Details

RSA Number 65823114 RSA 2011
Assessee PAN AAFCA5891D
Bench Jaipur
Appeal Number ITA 658/JPR/2011
Duration Of Justice 3 year(s) 4 month(s) 22 day(s)
Appellant ACIT, Alwar
Respondent M/s ASCENT BUILD HOME DEVELOPERS P LTD., Alwar
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 28-11-2014
Date Of Final Hearing 04-04-2012
Next Hearing Date 04-04-2012
Assessment Year 2006-2007
Appeal Filed On 06-07-2011
Judgment Text
IN THE INCOME TAX APPELALTE TRIBUNAL: JAIPUR BENCH JAIPUR BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI B. C. MEENA ACCOUNTANT MEMBER. ITA.NOS. 658 & 848/JP/2011 (ASSESSMENT YEAR:2006-07) ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2 ALWAR APPELLA NT VS. M/S ASCENT BUILD HOME DEVELOPERS PRIVATE LIMITED 102 GANPATI PLAZA BHIWADI-301019 DISTT. ALWAR (RAJ.) [NOW J-100 (BASEMENT) UTTARMUKHI FATEH TEEBA BHAUMIYON KI CHHATRI ADARSH NAGAR JAIPUR (RAJ.)] RESPONDENT PAN: AAFCA5891D / BY REVENUE :SHRI RAJESH OJHA D.R. / BY ASSESSEE : NONE (A.D. ON RECORD) /DATE OF HEARING :24.11.2014 /DATE OF PRONOUNCEMENT :28.11.2014 I.T.A. NOS. 658 & 848/JP/2011 A.Y. 2006-2007 (ACIT VS. M/S. ASCENT BUILD HOME DEVELOPERS P.LTD. ) PAGE 2 ORDER PER SHAILENDRA KUMAR YADAV J.M: THESE TWO APPEALS ONE ON QUANTUM AND OTHER ON PENAL TY HAVE BEEN FILED BY THE REVENUE AGAINST THE RESPECTI VE ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS) ALWAR DATED 28.04.2011 ON QUANTUM AND 04.07.2011 ON PENALTY FOR A.Y.2006-07. SO THEY ARE BEING DISPOSED OF BY WAY OF COMMON ORDER FOR SAKE OF CONVENIENCE. 2. IN ITA NO. 658/JP/2011 FOR A.Y. 2006-07 REVENUE HAS FILED QUANTUM APPEAL ON THE FOLLOWING GROUND: 1. THAT THE LD. CIT (A) HAS ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN DELETING THE ADDITION OF RS.32.50 LACS MADE U/S 68 ON A/C OF UNEXPLAINED CASH CREDIT AS MADE BY THE AO. 2.1 IN ITA NO. 848/JP/2011 FOR A.Y. 2006-07 REVENU E HAS FILED PENALTY APPEAL ON THE FOLLOWING GROUND: 1. THAT THE LD. CIT (A) HAS ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN DELETING THE PENALTY OF RS.9 75 000/- IMPOSED U/S 271(1)(C) OF T HE I.T. ACT 1961. I.T.A. NOS. 658 & 848/JP/2011 A.Y. 2006-2007 (ACIT VS. M/S. ASCENT BUILD HOME DEVELOPERS P.LTD. ) PAGE 3 3. ONLY ISSUE IN REVENUES QUANTUM APPEAL IS WITH R EGARDS TO ADDITION OF RS.32.50 LACS MADE U/S. 68 ON ACCOUN T OF UNEXPLAINED CASH CREDIT AS MADE BY ASSESSING OFFICE R. ASSESSING OFFICER OBSERVED THAT ASSESSEE RECEIVED A DVANCES AGAINST LAND FROM VARIOUS PARTIES. FROM SMT. AZMAN SMT. SABRA SMT. SAHIDA AND TAMANNA COMPANY RECEIVED RS .4.5 LAC 15 LAC AND 4 LAC RESPECTIVELY DURING YEAR UNDE R CONSIDERATION. STAND OF ASSESSEE HAS BEEN THAT ASS ESSEE HAS RECEIVED ADVANCE FROM ABOVE FOUR PARTIES AGAINST LA ND BUT AS ABOVE SAID PARTIES WERE NOT COMING FORWARD FOR VERI FICATION OF DEPOSIT THEREFORE COMPANY VOLUNTARILY OFFERED TO PAY TAX ON THE ABOVE DEPOSITS SUBJECT TO NON INITIATE OF PENAL TY PROCEEDINGS U/S. 271(1)(C). ASSESSING OFFICER MADE ADDITION OF RS.32 50 000/- ON ACCOUNT OF UNEXPLAINED CASH CREDI T U/S. 68 OF ACT. HE ALSO INITIATED PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE ACT. MATTER WAS CARRIED BEFORE FIRST APPELLATE AUTHORITY WHEREIN CIT(A) CALLED FOR REMAND REPORT VIDE LETTER NO. 1044 DATED 02/11/2010. COPY OF REMAND REPORT WAS GIVEN TO ASSESSEE VIDE LETTER DATED 02/11/2010. ASSESSEE FI LED REPLY OF THE SAME ON 09/11/2010. ASSESSING OFFICER AGAIN DI RECTED TO DEPUTE INSPECTOR TO RECORD STATEMENT OF CASH CREDIT ORS VIDE LETTER NO. 451 DATED 09/11/2010. ASSESSING OFFICER SENT HER REPORT VIDE LETTER NO. 348 DATED 21/01/2011. COPY OF THE SAME WAS GIVEN TO ASSESSEE AS WELL WHICH WAS RESPONDED BY ASSESSEE ON 21/03/2011. STAND OF ASSESSEE WAS THAT ASSESSEE RECEIVED ADVANCE OF RS.32.50 LACS FROM VARIOUS CUST OMERS AS FOLLOWS: I.T.A. NOS. 658 & 848/JP/2011 A.Y. 2006-2007 (ACIT VS. M/S. ASCENT BUILD HOME DEVELOPERS P.LTD. ) PAGE 4 I. SH. AZMAN RS. 4 50 000/- II. SMT. SABRA RS. 9 00 000/- III. SMT. SHAHIBA RS.15 00 000/- IV. TAMANA RS. 4 00 000/- THE PARTIES HAVE ACKNOWLEDGED ADVANCES TO ASSESSEE. DETAILS OF SAME HAVE BEEN GIVEN IN PARA 4.3 OF CIT(A) ORDER . THE DEBTORS HAD ALSO EXPLAINED SOURCE OF INCOME IN REMA ND PROCEEDINGS INTER ALIA SUBMITTING THAT INCOME FRO M PAST SAVINGS AND GIFTS RECEIVED FROM RELATIVES WERE KEPT IN CASH AS THERE RELIGION PROHIBITS THEM TO EARN INTEREST INCO ME. THUS ASSESSEE PROVED THE IDENTITY OF PERSON GENUINENESS OF TRANSACTION AND CREDITWORTHINESS TO THE CREDITOR. IN VIEW OF THIS CIT(A) WAS JUSTIFIED IN DELETING ADDITION OF R S.32 50 000/- MADE BY ASSESSING OFFICER U/S. 68 OF ACT. THIS REA SONED FINDING OF CIT(A) NEEDS NO INTERFERENCE FROM OUR SI DE. WE UPHOLD THE SAME. 4. AS A RESULT QUANTUM APPEAL FILED BY REVENUE IS DISMISSED. 5. NOW WE TAKE ITA NO. 848/JP/2011 PENALTY APPEAL FILED BY REVENUE. 6. ASSESSING OFFICER LEVIED PENALTY OF RS.9 75 000/ - ON ACCOUNT OF ALLEGED CASH CREDITORS OF RS.32 50 000/- WHICH WAS DELETED BY CIT(A) AND WE HAVE CONFIRMED THE DELETIO N OF SAID I.T.A. NOS. 658 & 848/JP/2011 A.Y. 2006-2007 (ACIT VS. M/S. ASCENT BUILD HOME DEVELOPERS P.LTD. ) PAGE 5 CASH CREDIT ADDITIONS VIDE PARA 3 OF THIS ORDER. I N VIEW OF THIS THE ABOVE PENALTY DOES NOT SURVIVE. SO CIT(A) JUS TIFIED IN DELETING PENALTY IN QUESTION. SAME IS UPHOLD. 7. BOTH APPEALS FILED BY REVENUE ONE ON QUANTUM AN D OTHER ON PENALTY U/S. 271(1)(C) ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 28 TH DAY OF NOVEMBER 2014. SD/- SD/- (B. C. MEENA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R TRUE COPY S.K.SINHA COPY FORWARDED TO: 1. THE APPELLANT- ACIT CIRCLE-2 ALWAR. 2. THE RESPONDENT- M/S ASCENT BUILD HOME DEVELOPERS (P) LTD. 3. THE CIT 4. CIT(APPEALS) 5. THE DR 6. GUARD FILE (ITA NOS. 658 & 848/JP/2011) BY ORDER A.R. JAIPUR.