The ITO, Jr., Ward-2(4), PORBANDAR V. Rambhai Mashribhai Odedara,

ITA 1031/RJT/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56678 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 06-09-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 01-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) AND SHRI N.R.S. GANESA N (JM) I.T.A. NO.1028 TO 1033/RJT/2010 (ASSESSMENT YEARS 1999-2000 TO 2004-05) ITO, JR, WARD 2(4) VS RAMBHAI MASHRIBHAI ODEDRA PORBANDAR FATANA, TAL : PORBANDAR PAN : AAJPO1169R (APPELLANT) (RESPONDENT) DATE OF HEARING : 06-09-2011 DATE OF PRONOUNCEMENT : -09-2011 APPELLANT BY : SHRI MK SINGH RESPONDENT BY: SHRI KALPESH DOSHI O R D E R PER BENCH THESE APPEALS OF THE REVENUE ARE DIRECTED AGAINST T HE COMMON ORDER OF CIT(A), JAMNAGAR DATED 27-04-2010 PERTAINI NG TO ASSESSMENT YEARS 1999-2000 TO 2004-05 WHEREBY THE CIT(A) DELET ED THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE ACT 2. WE HAVE HEARD SHRI MK SINGH, THE LD.DR AND SHRI KALPESH DOSHI, THE LD.REPRESENTATIVE FOR THE ASSESSEE. 3. UPON CONSIDERATION OF THE RIVAL SUBMISSIONS AND ON PERUSAL OF THE MATERIAL AVAILABLE ON RECORD WE FIND THAT THE CIT(A ) DELETED THE PENALTY ITA NO.1028 TO 1033/RJT/2010 2 IMPOSED FOR ALL THESE ASSESSMENT YEARS UNDER CONSID ERATION ON THE GROUND THAT THE QUANTUM ADDITION AGAINST WHICH THE PENALTY HAS BEEN IMPOSED HAS BEEN DELETED BY THE TRIBUNAL. THE ASSESSEE IS A CI TIZEN OF UK AND ASSESSED IN THE STATUS OF NON-RESIDENT. THE ASSESS EE HAD INVESTMENT OF RS.534 LAKHS IN FD WITH DENA BANK FOR 75 MONTHS AND INTEREST WAS RECEIVABLE ALONGWITH THE PRINCIPAL AMOUNT ON MATURI TY OF THE DEPOSIT. THE ASSESSEE CLAIMED THAT HE FOLLOWED CASH SYSTEM OF AC COUNTING AND THE INTEREST ON DEPOSIT WAS SHOWN IN THE YEAR OF RECEIP T ON MATURITY. THE ASSESSING OFFICER NURTURED A DIFFERENT VIEW AND HEL D THAT THE INTEREST WAS TO BE TAXED ON ACCRUAL BASIS WHICH RESULTED IN THE IMP UGNED ADDITIONS AND CONSEQUENTIAL IMPOSITION OF PENALTY U/S 271(1)(C) O F THE ACT. NOW, AS IT STANDS BEFORE US, THE ADDITIONS FOR ALL THE ASSESSM ENT YEARS UNDER CONSIDERATION ARE DELETED BY THE TRIBUNAL VIDE ORDE R DATED 13-04-2010 IN ITA NOS 149 TO 154/RJT/2009. AS A CONSEQUENCE, THE PENALTY ON THE INCOME WHICH HAS BEEN DELETED BY THE TRIBUNAL, HAS NO LEG TO STAND. THEREFORE, WE HOLD THAT THE CIT(A) HAS RIGHTLY DELE TED THE PENALTY IMPOSED FOR THE ASSESSMENT YEARS UNDER CONSIDERATION. HIS ORDER IS HEREBY UPHELD. THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09-09-2011. SD/- SD/- (N.R.S. GANESAN) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER RAJKOT, DT : 09 TH SEPTEMBER, 2011 ITA NO.1028 TO 1033/RJT/2010 3 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A), JAMNAGAR 4. THE CIT, JAMNAGAR 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT