ITO Wd. 2(1), Kolhapur v. Shri Khot Sunil Sudhakar, Kolhapur

ITA 795/PUN/2009 | 2005-2006
Pronouncement Date: 31-03-2011 | Result: Dismissed

Appeal Details

RSA Number 79524514 RSA 2009
Bench Pune
Appeal Number ITA 795/PUN/2009
Duration Of Justice 1 year(s) 8 month(s) 27 day(s)
Appellant ITO Wd. 2(1), Kolhapur
Respondent Shri Khot Sunil Sudhakar, Kolhapur
Appeal Type Income Tax Appeal
Pronouncement Date 31-03-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 31-03-2011
Date Of Final Hearing 30-03-2011
Next Hearing Date 30-03-2011
Assessment Year 2005-2006
Appeal Filed On 03-07-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI I.C. SUDHIR (JM) AND SHRI D. KARUNAKARA RAO (AM) ITA NO. 795/ PN /2009 ( ASSTT. YEAR S : 2005 - 06 ) THE INCOME TAX OFFICER WARD 2 ( 1 ) KOLHAPUR .. APP ELLANT V. SHRI KHOT SUNIL SUDHAKAR PROP. MAHARAJA TRAVELS OPP. S.T. STAND E. WARD KOLHAPUR PAN : NOT AVAILABLE . RESPONDENT C.O. NO. 37/ PN /2010 (ARISING OUT OF ITA NO. 795/PN/2009) (ASSTT. YEAR S : 2005 - 06 ) SHRI KHOT SUNIL SUDHAKAR PROP. MAHARAJA TRAVELS OPP. S.T. STA ND E. WARD KOLHAPUR PAN : NOT AVAILABLE . CROSS OBJECTOR V. THE INCOME TAX OFFICER WARD 2(1) KOLHAPUR .. RESPONDENT APP ELLANT BY : SHRI HARESHWAR SHARMA RESPONDENT BY : SHRI C.G.DOSHI & SMT.NEETA DADLANI ORDER PER I.C. SUDHIR J M I TA NO. 795/PN/2009 IN T HIS APPEAL THE REVENUE HAS QUESTIONNED THE ACTION OF LD CIT(A) IN DELETING THE PENALTY LEVIED U/S. 271(1)(C) OF THE ACT. 2. AFTER HAVING GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW WE FIND THAT THE A.O HAD LEVIED PENALTY U/ S. 271(1)(C ) OF THE ACT ON THE ADDITION MADE BY WAY OF DISALLOWANCE OF PROPORTIONATE INTEREST AT ITA . NO .795 /PN/2009AND C.O.NO.37/PN/2010 SH.KHOT SUNIL SUDHAKAR A.Y 2005 - 06 . - 2 THE RATE OF 18% ON THE ADVNCE MADE TO M/S. HOTEL MAHARAJA DELUXE AND SHRI ASHOK KHOT. THE ASSESSEE OBJECTED THE PENALTY WITH THIS CONTENTION THAT THE ADDITIO N WAS ON ACCOUNT OF DIFFERENCE OF OPINION BETWEEN THE A.O AND ASSESSEE. THE ASSESSEE WAS A PARTNER IN HOTEL MAHARAJA DELUXE WITH 50% SHARE. THE FUNDS WERE UTILIZED BY THE ASSESSEE FOR BUSINESS PURPOSES OF THE FIRM WHERE HE WAS A PARTNER. THUS IN SPIT E OF THE DISALLOWANCE MADE IT CANNOT BE SAID THAT THE ASSESSEE HAD DISCLOSED INACCURATE PARTICULARS OF INCOME. IT WAS CONTENDED FURTHER THAT ROUTINE ADDITION MADE THAT TOO ON ESTIMATE CANNOT BE A SUBJECT MATTER OF PENALTY. ACCEPTING THIS SUBMISSION IN OUR VIEW THE LD CIT(A) HAS RIGHTLY DELETED THE PENALTY AS THE ISSUE OF DISALLOWANCE OF INTEREST IS A DEBATABLE ONE. THE ASSESSEE HAD GIVEN ALL THE DETAILS AND DISCLOSED ALL THE MATERIAL INFORMATION BEFORE THE A.O. WE ARE THUS OF THE VIEW THAT UNDE R SUCH CIRCUMSTANCES IT CANNOT BE ALLEGED BEYOND DOUBT THAT THERE WAS FURNISHING OF INACCURATE PARTICULARS OF INCOME ON THE PART OF THE ASSESSEE ABOUT THE DISALLOWANCE IN QUESTION. THE FIRST APPELLATE ORDER DELETING THE PENALTY IS THUS UPHELD. THE GROU ND IS ACCORDINGLY REJECTED. 3. IN THE RESULT APPEAL IS DISMISSED. C.O. NO. 37/PN/2010 4. THE ASSESSEE HAS PREFERRED THE PRESENT CROSS OBJECTION ONLY IN SUPPORT OF THE FIRST APPELLATE ORDER DELETING THE PENALTY. IN VIEW OF OUR DECISION HEREINABOVE IN THE APPEAL PREFERRED BY THE REVENUE WHEREBY WE HAVE UPHELD THE ACTION OF THE LD CIT(A) IN DELETING THE PENALTY THE PRESENT CROSS OBJECTION IS DISMISSED AS HAVING BECOME INFRUCTUOUS. 5 . IN THE RESULT BOTH THE APPEAL AND CROSS OBJECTION ARE DISMISSED. ITA . NO .795 /PN/2009AND C.O.NO.37/PN/2010 SH.KHOT SUNIL SUDHAKAR A.Y 2005 - 06 . - 3 THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 31ST MARCH 2011. SD/ - SD/ - ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR ) JUDICIAL MEMBER PUNE DATED THE 31ST MARCH 20 1 1 US COPY OF THE ORDER IS FORWARDED TO : 1. THE A PP ELLA NT 2. THE RESPONDENT 3. THE CIT(A) - CONCERNED 4. THE CIT - CONCERNED 4 . THE D.R. A BENCH PUNE 5 . GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE