Pradip Kumar Jain, Kolkata V. I.T..O Wd - 11(4),kolkata, Kolkata

ITA 1134/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4787 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 16-05-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 08-05-2013
• Court: TRIBUNAL
• Department Lawyers: ALOK KR NAG
• Assessee Lawyers: S N NAG
• Keywords: Salary income
• Section: 143(3); 144

Judgement Text

1 ITA NO.1134/KOL/2013-PRADIP KUMAR JAIN A.Y.2005-06 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH B KOL KATA [BEFORE HONBLE SHRI N.V.VASUDEVAN, JM & SHRI M.B ALAGANESH, AM ] ITA NO.1134/KOL/2013 ASSESSMENT YEAR : 2005-06 PRADIP KUMAR JAIN -VERSUS- I.T.O., WARD-11(4), KOLKATA KOLKATA (PAN:ACQPJ9154Q) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI S.N.NAG, FCA FOR THE RESPONDENT: SHRI ALOK KR. NAG, JCIT, SR.DR DATE OF HEARING : 16.05.2016. DATE OF PRONOUNCEMENT : 20.05.2016. ORDER PER N.V.VASUDEVAN, JM: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 16.11.2012 OF CIT(A) XII, KOLKATA, RELATING TO AY 2005-06. 2. IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE ORDER OF CIT(A) WHEREBY THE CIT(A) CONFIRMED THE ORDER OF AO IMPOSING PENALTY ON THE A SSESSEE U/S 271(1)((C) OF THE ACT. 3. THE FACTS AND CIRCUMSTANCES UNDER WHICH THE P ENALTY WAS IMPOSED ON THE ASSESSEE ARE AS FOLLOWS :- THE ASSESSEE IS AN INDIVIDUAL. HE FILED THE RETURN OF INCOME FOR A.Y.2005-06 DECLARING TOTAL INCOME OF RS.3,48,840/-. IN THE ASS ESSMENT COMPLETED U/S 143(3) OF THE INCOME TAX ACT, 1961 (ACT), THE AO DISALLOWED STAN DARD DEDUCTION OF RS.30,000/- U/S 16(I) OF THE ACT. BESIDES THE ABOVE THE AO HAD ALSO DISALLOWED CLAIM OF THE INTEREST EXPENDITURE WHILE COMPUTING THE INCOME FRO M OTHER SOURCES OF RS.2,75,418/-. THE AO ALSO ADDED A SUM OF RS.60,000/- ON ACCOUNT O F LOW WITHDRAWALS. IN RESPECT OF THE THREE ADDITIONS PENALTY WAS IMPOSED ON THE ASSE SSEE BY THE AO U/S 271(1)(C) OF 2 ITA NO.1134/KOL/2013-PRADIP KUMAR JAIN A.Y.2005-06 THE ACT AND THE SAME WAS CONFIRMED BY CIT(A). AGGRI EVED BY THE ORDER OF CIT(A) THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL BEFORE TH E TRIBUNAL. 4. AT THE TIME OF HEARING OF THE APPEAL IT WAS B ROUGHT TO OUR NOTICE THAT AS AGAINST THE ORIGINAL ORDER OF ASSESSMENT DATED 26.12.2007 PASSE D BY AO U/S 144 OF THE ACT MAKING THE AFORESAID IMPUGNED ADDITIONS THE ASSESSE E PREFERRED APPEAL BEFORE CIT(A). THE CIT(A) ALLOWED THE FOLLOWING RELIEFS :- I) THE CLAIM OF STANDARD DEDUCTION OF RS.30,000.00 U/S 16(I) AGAINST SALARY INCOME DISALLOWED BY THE AO WAS ALLOWED BY CIT(A). II) THE CLAIM OF INTEREST OF DEDUCTION OF INTEREST EXPENDITURE OF RS.2,79,418.00 WHILE COMPUTING INCOME FROM OTHER SOURCES, DISALLOWED BY THE AO WAS ALLOWED BY THE CIT(A). III) THE CIT(A) HAD ALLOWED RELIEF OF RS.40,000.00 AGAINST THE ADDITION OF RS.60,000.00 ON ACCOUNT OF PERSONAL DRAWING AND SUSTAINED ADDITI ON OF RS.20,000.00 ONLY. 5. IT WAS THEREFORE SUBMITTED THAT IMPOSITION OF P ENALTY WOULD ONLY SURVIVE WITH REGARD TO THE ADDITION OF RS.20,000/- ON ACCOUNT OF LOW DRAWINGS. IT WAS POINTED OUT THAT THIS ADDITION ON ACCOUNT OF LOW DRAWINGS IS PU RELY ON THE BASIS OF ESTIMATE AND THERE CAN BE NO PRESUMPTION THAT THE ASSESSEE CONCE ALED PARTICULARS OF HIS INCOME OR FURNISHED INACCURATE PARTICULARS OF INCOME. THE LD. DR RELIED ON THE ORDER OF CIT(A). 6. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBM ISSIONS AND ARE OF THE VIEW THAT THE IMPOSITION OF PENALTY ON THE ADDITION MADE BY AO ON ACCOUNT OF LOW DRAWINGS IS PURELY ON ESTIMATE BASIS. IT CANNOT THEREFORE BE SA ID THAT THE ASSESSEE CONCEALED PARTICULARS OF INCOME OR FURNISHED INACCURATE PARTI CULARS OF INCOME. IN RESPECT OF THE OTHER TWO ADDITIONS ON ACCOUNT OF DISALLOWANCE OF S TANDARD DEDUCTION AND DISALLOWANCE OF INTEREST EXPENDITURE, THE CIT(A) HA S ALREADY DELETED THE ADDITIONS MADE BY THE AO. THEREFORE THE IMPOSITION OF PENALTY ON THESE TWO ADDITIONS CANNOT BE SUSTAINED. WE THEREFORE ARE OF THE VIEW THAT IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, ORDER IMPOSING PENALTY DESERVES TO BE CANCELL ED AND IS HEREBY CANCELLED. 3 ITA NO.1134/KOL/2013-PRADIP KUMAR JAIN A.Y.2005-06 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE COURT ON 20.05.2016. SD/- SD/- [M.BALAGANESH ] [ N.V.VASUDEVAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 20.05.2016. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.PRADIP KUMAR JAIN, 87L, PARK STREET, GROUND FLOOR , KOLKATA-700016. 2. I.T.O.WARD-11(4), KOLKATA. 3. CIT(A)-XII, KOLKATA 4. CIT-IV, KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, ASST. REGISTRAR, ITAT, KOLKATA BENCHES