Shri Jogindersingh S.Narang, Surat V. The Income tax Officer,Ward-2(2), Surat

ITA 1108/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9467 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-12-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 19-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Peak credit
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 271(1)(c); 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

ITA NO. 1108 /AHD/201 3 A SSESSMENT Y EAR: 20 0 8 - 09 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH, SMC , AHMEDABAD [CORAM: PRAMOD KUMAR AM] ITA NO. 1108 /AHD/2013 ASSESSMENT Y EAR : 200 8 - 09 JOGINDERSINGH S. NARANG, ..... .......... .APPELLANT SHED NO.62, JALARAM IND. SOCIETY, UDHNA MAGDALLA RO AD, SURAT. [PAN: AA O P N 6073 E ] VS. INCOME TAX OFFICER, WARD 2(2 ), SURAT. ................ RESPONDENT APPEARANCES BY: MEHUL SHAH FOR THE APPELLANT K. MADHUSUDAN FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : 2 2 . 12 .201 6 DA TE OF PRONOUNCING THE ORDER : 30 . 01.2017 O R D E R 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 0 4.0 2 .2013, PASSED BY THE LEARNED CIT(A) , FOR THE ASSESSMENT YEAR 200 8 - 09 . 2. GRIEVANCE OF THE ASSESSEE, IN SUBSTANCE, IS THAT THE LEARNED CIT(A) ERRED IN CONFIRMING THE IMPUGNED PENALTY OF RS.70,330/ - IMPOSED ON THE ASSESSEE UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961. 3. THE RELATED QUANTUM ADDITION OF RS.2,83,483/ - IS IN RESPECT OF PEAK BALANCE IN ACCOUNT NO.07 91000100091574 IN THE PUNJAB NATIONAL BANK. THE ASSESSEE S EXPLANATION WAS THAT THE ASSESSEE HAD EARNED ONLY COMMISSION INCOME @ 1% IN RESPECT OF TRANSACTIONS THROUGH THIS BANK ACCOUNT. THIS EXPLANATION WAS REJECTED FOR WANT OF EVIDENCE AND THE ENTIRE PE AK CREDIT WAS ADDED TO THE INCOME OF THE ASSESSEE. ITA NO. 1108 /AHD/201 3 A SSESSMENT Y EAR: 20 0 8 - 09 PAGE 2 OF 3 THE MATTER DID NOT REST THERE. THE ASSESSING OFFICER ALSO IMPOSED A PENALTY OF RS.70,330/ - BY HOLDING THAT THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS OF INCOME AND HAS CONCEALED INCOME. AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LEARNED CIT(A) BUT WITHOUT ANY SUCCESS. THE ASSESSEE IS NOT SATISFIED AND IS IN FURTHER APPEAL BEFORE ME. 4. I HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. 5. I FIND THAT THOUGH THE ASSESSEE HAS ACCEPTED THE ADDITION AND DID NOT CARRY THE MATTER IN FURTHER APPEAL, THE ASSESSEE HAD A REASONABLE EXPLANATION WHICH WAS REJECTED ONLY FOR WANT OF CONCLUSIVE EVIDENCE. SO FAR AS PENALTY PROCEEDINGS ARE CONCERNED, AS IS THE SETTLED LEGAL POSITION, IT IS NOT EVEN NECESSARY THAT THE EXPLANATION IS PROVED TO THE HILT. AS LONG AS THE EXPLANATION IS REASONABLE AND BONAFIDE, AS IN MY OPINION IS IT IN THIS CASE, THE PENALTY UNDER SECTION 271(1)(C) NEED NOT BE IMPOSED. IN THIS VIEW OF THE MATTER, AND BEARING IN MIND ENTIRETY OF THE CASE, I AM OF THE VIEW THAT IT WAS INDEED NOT A FIT CASE FOR PENALTY. 6. FOR THE REASONS SET OUT ABOVE, I UPHOLD THE GRIEVANCE OF THE ASS ESSEE, AND ACCORDINGLY, DELETE THE IMPUGNED PENALTY. 7. IN THE RESULT, THE APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF JANUARY, 2017 . SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: THE 30 TH DAY OF JANUARY, 2017 . ITA NO. 1108 /AHD/201 3 A SSESSMENT Y EAR: 20 0 8 - 09 PAGE 3 OF 3 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL A HMEDABAD BENCHES, AHMEDABAD