DCIT CIRCLE-3 THANE, THANE V. DAYANAND DAMODAR PATIL, THANE

ITA 3354/MUM/2024

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A) which deleted a substantial penalty imposed on the assessee, Dayanand Damodar Patil, for the assessment year 2012-13. The penalty was originally levied by the AO following a suspicious transaction report from the FIU-INDIA, which led to the investigation of high-value transactions in the assessee's bank account. The assessee had declared a short-term capital gain from the sale of land, which was later found to be non-agricultural, and offered Rs.3 Crores as capital gain in his return. The AO accepted this declaration but imposed a penalty, which was contested and ultimately deleted by the CIT(A). The Tribunal upheld the CIT(A)'s decision, noting that the assessee had voluntarily disclosed the income and there was no evidence of inaccurate particulars being furnished.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473399 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA
• Assessee Lawyers: MANI JAIN
• Keywords: Depreciation

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.3354/Mum/2024 (Assessment Year :2012-13) DCIT Circle-3 Thane Vs. Dayanand Damodar Patil, Swagat Bunglow Vartak Road Near Hira Vidyalay School, Virar West Palghar, Maharashtra- 401 303 PAN/GIR No.ABQPP8445H (Appellant) .. (Respondent) Assessee by Shri Mani Jain & Shri Prateek Jain Revenue by Shri R.R. Makwana, Addl. CIT Date of Hearing 30/01/2025 Date of Pronouncement 28/02/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the Revenue against order dated 17/04/2024 passed by NFAC, Delhi in relation to penalty proceedings u/s. 271(1)(c). 2. The Revenue is aggrieved by deletion of penalty of Rs.3,00,58,858/- which was levied by the ld. AO on the income offered by the assessee in the return of income filed u/s.139(4). ITA No.3354/Mum/2024 Dayanand Damodar Patil 2 3. The brief facts are that assessee has filed return of income for A.Y.2012-13 on 24/02/2014 declaring income of Rs.3,09,82,840/-. In this case a suspicious transaction report has been received from the FIU- INDIA regarding verification of the genuineness of high value transaction made in the saving bank account. On perusal of bank account, it was found that the account was credited through cheques from the account of individuals and debited to the account of individual through transfers. Total credits were made of Rs 5,62,62,500/- In response, the assessee submitted that he had sold a agricultural land at village Walve, Palghar, on 31/10/2011. During the course of investigation, it was found that land was non- agricultural land. Thereafter, the assessee offered Rs.3 Crores out of total consideration of Rs. 5.62 Crores received for sale of land over as capital gain in his regular return of income for the A.Y.2012-13. 4. In the assessment order, ld. AO held that Investigation Wing of the Income Tax department detected certain transaction of sale of land undertaken by the assessee and it is only after the detection by the investigation wing, assessee has disclosed said transaction and filed return of income on 24/02/2014. Even though he has accepted the return, he has initiated penalty u/s. 271(1) (c) on the declaration of capital gain on sale of land in the return of income. 5. From the perusal of the records it is seen that, even though assessee has filed its return of income on 24/03/2024, however, ITA No.3354/Mum/2024 Dayanand Damodar Patil 3 assessee’s case was selected for scrutiny and notice u/s.143(2) was issued on 02/09/2014 that is much after the disclosure in the return of income. In the assessment order return of income filed on 02/09/2014 and the income offered as short term capital gain on sale of land has been accepted and there is no disallowance or any adverse drawn by the ld. AO with regard to disclosure of short term capital gain. Only addition which has been added by the ld. AO is in respect to adhoc disallowance of expenses and disallowance on account of depreciation. No way, the ld. AO has found that assessee has furnished any inaccurate particulars of income during the course of assessment proceedings. It is also not brought on record that it is only the enquiry conducted by the Investigation department which prompted assessee to offer short term capital gain but the fact of the matter is that assessee had short term capital gain in the return filed u/s.139 which has been accepted by the ld. AO. Thus in such a case, no penalty can be levied. Accordingly, the ld. CIT(A) has rightly deleted the penalty. 5. In the result, appeal of the Revenue is dismissed. Order pronounced on 28th February, 2025. Sd/- (GIRISH AGRAWAL) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 28/02/2025 KARUNA, sr.ps ITA No.3354/Mum/2024 Dayanand Damodar Patil 4 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "