ACIT, CHENNAI V. Dr.Ravi Ramalingam, CHENNAI

ITA 1038/CHNY/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1206 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-01-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 22-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JUNIOR
• Assessee Lawyers: P S PRABHAKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH D CHENNAI (BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER) ..... I.T.A. NO. 1038/MDS/2010 ASSESSMENT YEAR : 2003-04 THE ASSISTANT COMMISSIONER OF INCOME TAX, BUSINESS CIRCLE XIV, CHENNAI - 600 034. (APPELLANT) V. DR. RAVI RAMALINGAM, NO.827, PH ROAD, CHENNAI - 600 010. PAN : AACPR1666D (RESPONDENT) APPELLANT BY: SHRI K.E.B. RENGARAJAN JUNIOR STANDING COUNSEL RESPONDENT BY: SH RI P.S. PRABHAKAR O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER : THIS IS AN APPEAL OF THE REVENUE AGAINST THE DELET ION OF PENALTY OF ` 2,49,675/- IMPOSED UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (IN SHORT, THE ACT) 28.9.2006 FOR ASSES SMENT YEAR 2003- 04. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILE D HIS RETURN OF INCOME FOR ASSESSMENT YEAR 2003-04 ADMITTING TOTAL INCOME OF ` I.T.A. NO. 1038/MDS/10 2 11,42,790/-, WHICH WAS ACCEPTED UNDER SECTION 143(1 ) OF THE ACT. DURING THE REGULAR ASSESSMENT, IT WAS NOTICED THAT THE ASSESSEE HAS CLAIMED A CAPITAL LOSS OF ` 7,92,621/- FROM THE SALE OF SHARES WHICH HAD BEEN SET OFF AGAINST LONG TERM CAPITAL GAINS OF ` 40,84,814/- ARISING ON SALE OF IMMOVABLE PROPERTY. SUBSEQUENTL Y, A PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT WAS INITIATED BECAUSE AS PER THE A.O., LOSS ARISING ON ACCOUNT OF SPECULA TION BUSINESS IS NOT ELIGIBLE FOR SET OFF AGAINST OTHER INCOMES. THEREF ORE, AFTER GIVING DUE NOTICE, THE A.O. IMPOSED PENALTY OF ` 2,49,675/- UNDER SECTION 271(1)(C) OF THE ACT, ON THE ASSESSEE WHICH WAS DEL ETED BY THE LD. CIT(APPEALS) AND NOW THE REVENUE IS AGGRIEVED. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE FOUND T HAT THE ASSESSEE HAS DISCLOSED ALL THE TRUE PARTICULARS OF INCOME AND THE CLAIM OF LONG TERM CAPITAL LOSS HAD BEEN RETURNED I N HIS RETURN AGAINST THE LONG TERM CAPITAL GAIN. IT IS NOTICED THAT NON E OF THE DETAILS SUPPLIED BY THE ASSESSEE IN HIS RETURN OF INCOME HA S BEEN FOUND TO BE INCORRECT, ERRONEOUS OR FALSE. THIS IS THE CASE WHERE THE ASSESSEE ADMITTED THE CLAIM WHICH WAS NOT LEGALLY ALLOWABLE. THEREFORE, IN OUR CONSIDERED OPINION, A PENALTY CANNOT BE LEVIED EITH ER FOR CONCEALMENT OF INCOME OR FOR FURNISHING OF INACCURATE PARTICULA RS OF INCOME. I.T.A. NO. 1038/MDS/10 3 THEREFORE, WE CONFIRM THE IMPUGNED DELETION AND DIS MISS THE APPEAL OF THE REVENUE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. THE ORDER WAS PRONOUNCED IN THE COURT ON 20 TH JANUARY, 2011. SD/- SD/- (DR. O.K. NARAYANAN) (HAR I OM MARATHA) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 20 TH JANUARY, 2011. KRI . COPY FORWARDED TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A)-XII, CHENNAI-34 (4) CIT, CHENNAI-X, CHENNAI (5) D.R. (6) GUARD FILE