VADIVELU JANAKARAJ, CHENNAI V. ACIT , NON CORP . CIRCLE -20 (1), CHENNAI

ITA 1099/CHNY/2022

AI Insights

The case involves Shri Vadivelu Janakaraj, the appellant, who appealed against the penalties imposed by the Assessing Officer (AO) under section 271(1)(c) for the Assessment Years 2012-13 and 2013-14. The penalties were levied following the AO's additions to the assessee's income, which were based on speculative income from trading in commodity derivatives. The assessee had admitted this income in the returns filed for the respective years but argued that no real income was earned as the total investments were ultimately lost. The Commissioner of Income Tax (Appeals) upheld the penalties, leading to the current appeals before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133976 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 20-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 143(3)

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी वी. द ु गा1 राव, ाियक सद3 एवं माननीय +ी मनोज कु मार अ8वाल ,लेखा सद3 के सम:। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.1099/Chny/2022 (िनधा1रण वष1 / Assessment Year: 2012-13) & आयकर अपील सं./ ITA No.1100/Chny/2022 ( िनधा1रण वष1 / Assessment Year: 2013-14) Shri Vadivelu Janakaraj 8, H.D. Rajah Street, Eldams Road, Chennai – 600 018. बनाम/ V s. ACIT Non Corporate Circle-20(1), Chennai. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AE ZP J -6 2 9 2 - C (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri S. Sridhar (Advocate) – Ld. A.R थ की ओरसे/Respondent by : Shri D. Hema Bhupal (JCIT) – Ld. DR सुनवाई की तारीख/Date of Hearing : 23-01-2023 घोषणा की तारीख /Date of Pronouncement : 23-01-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of certain penalty u/s 271(1)(c) for captioned assessment years (AY), the assessee is in further appeal before us. The facts in both the years are identical. The appeal for Assessment Year (AY) 2012-13 arises out of order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 28-10-2022 in the matter of penalty ITA Nos.1099 & 1100/Chny/2022 - 2 - levied by Ld. Assessing Officer [AO] vide order dated 01.01.2022. The orders for AY 2013-14 are on same lines. Having heard rival submission, the appeals are disposed-off as under. 2. In AY 2012-13, an assessment was framed u/s 143(3) r.w.s. 147 on 24.09.2019 making additions of Rs.2.58 Lacs on account of speculative income from trading in commodity derivatives. The said income was already admitted in the return of income filed by the assessee. Consequently, penalty proceedings were initiated u/s 271(1)(c) for concealment of income. The assessee, inter-alia, defended its stand on the ground that it did not really earned any real income and the total investments were ultimately lost. Only to buy peace, the assessee returned the income in two years and claimed the loss in third year. However, Ld. AO imposed penalty of Rs.0.79 Lacs on the ground that if the case had not been reopened, the income would have not been taxed in the hands of the assessee. The ld. CIT(A) confirmed the penalty against which the assessee is in further appeal before us. The penalty of Rs.0.77 Lacs was levied as well as confirmed for AY 2013-14 on similar lines. 3. Upon perusal of facts, it emerges that the assessee has already declared the income in the return of income and the same has been accepted. The concealment of income has to be in the return of income filed by the assessee. Secondly, the assessee has not earned any real income and overall there is a loss for the assessee. Considering these facts, it is not a fit case for levy of penalty. By deleting the same, we allow the appeals for both the years. ITA Nos.1099 & 1100/Chny/2022 - 3 - 4. Both the appeal stands allowed. Order pronounced on 23 rd January, 2023. Sd/- (V. DURGA RAO) ाियक सद3 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद3 / ACCOUNTANT MEMBER चे*ई / Chennai ; िदनांक / Dated : 23-01-2023 EDN/- आदेश की Uितिलिप अ 8ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF