SHRI ARVIND SHARMA, JAIPUR V. INCOME TAX OFFICER, WARD-1-3, JAIPUR

ITA 1040/JPR/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 5937 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 19-08-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANMOHAN KANDPAL ACIT DHK
• Keywords: Business income

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA , ACCOUNTANT MEMBER VK;DJ VIHY LA -@ ITA NO. 1040/JP/2019 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2012-13 ARVIND SHARMA, 119, ANGIRA NAGAR, KHATIPURA, JAIPUR. CUKE VS. I.T.O., WARD-1(3), JAIPUR. LFKK;H YS[KK LA -@THVKBZVKJ LA -@ PAN/GIR NO.: BKBPS 0426 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI RAJENDRA AGARWAL (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI MANMOHAN KANDPAL (ACIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 20/11/2019 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 21/11/2019 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-I, JAIPUR DATED 16/07/2019 FOR THE A.Y. 2012-13 IN THE MATTER OF IMPOSITION OF PENALTY U/S 271A OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). ITA 1040/JP/2019 ARVIND SHARMA VS ITO 2 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSMENT WAS REOPENED ON GETTING INFORMATION THAT THE ASSESSEE WAS TAKING BOGUS ENTRIES OF LONG TERM CAPITAL GAIN AMOUNT TO RS. 2,39,25,064/-. AFTER REOPENING THE A.O. FOUND THAT AS PER TRADING ACCOUNT OF SHARES FILED BY THE ASSESSEE, TOTAL SALES OF THE ASSESSEE IS RS. 3,99,96,449/- FOR THE YEAR UNDER CONSIDERATION. BUT THE ASSESSEE FAILED TO KEEP AND MAINTAIN ANY SUCH BOOKS OF ACCOUNT AND OTHER DOCUMENTS AS REQUIRED BY SECTION 44AA IN RESPECT OF PREVIOUS YEAR. THEREFORE, PENALTY U/S 271A IS INITIATED FOR NON-MAINTENANCE OF BOOKS OF ACCOUNT. THE A.O. ALSO LEVIED PENALTY U/S 271B OF THE ACT FOR NOT GETTING THE ACCOUNTS AUDITED. THE LD. CIT(A) DELETED THE PENALTY IMPOSED U/S 271B OF THE ACT ON THE PLEA THAT SINCE THE ASSESSEE HAS NOT MAINTAINED PROPER BOOKS OF BOOK THERE IS NO OCCASION TO GET THE ACCOUNTS AUDITED, THEREFORE, THERE IS NO JUSTIFICATION FOR LEVY OF PENALTY U/S 271B OF THE ACT. THE ASSESSEE HAS NOT CHALLENGED THE ORDER OF THE LD. CIT(A) TO THE FINDING THAT THE ASSESSEE HAS NOT MAINTAINED BOOKS OF ACCOUNT ACCORDINGLY THE ASSESSEE HAS ACCEPTED THE FINDING OF THE LD. CIT(A) FOR NOT MAINTAINING THE BOOKS OF ACCOUNT. ACCORDINGLY, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) IN CONFIRMING THE PENALTY U/S ITA 1040/JP/2019 ARVIND SHARMA VS ITO 3 271A OF THE ACT FOR NOT MAINTAINING BOOKS OF ACCOUNT. I UPHOLD THE SAME. 3. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST NOVEMBER, 2019 SD/- JES'K LH 'KEKZ ( RAMESH C SHARMA ) YS[KK LNL; @ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 21 ST NOVEMBER, 2019 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI ARVIND SHARMA, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE I.T.O., WARD-1(3), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 1040/JP/2019) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR