Shri Mukeshbhai Kalidas Patel, Ahmedabad V. The Asst.DIT.,(Intl.Taxn.), Ahmedabad

ITA 1208/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8193 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 21-06-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 22-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Keywords: Corroborative evidences

Judgement Text

ITA NO. 1208/AHD/2014 SHRI MUKESHBHAI KALIDAS PATEL VS. ADIT A.Y. 2007-08 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MAHAVIR PRASAD JM] I.T.A. NO.1208/AHD/2014 ASSESSMENT YEAR : 2007-08 SHRI MUKESH KALIDAS PATEL .....APPELLANT 2A, TIRTHNAGAR SOCIETY III, SOLA ROAD, GHATLODIA, AHMEDABAD - 380061 [PAN : AAVPP 9801 P] VS. THE ASST. DIRECTOR OF INCOME-TAX .RESPONDENT (INTERNATIONAL TAXATION), AHMEDABAD APPEARANCES BY: URVASHI SHODHAN FOR THE APPELLANT VK SINGH FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 09.08.2017 DATE OF PRONOUNCING THE ORDER : 27.10.2017 O R D E R PER PRAMOD KUMAR AM: 1. THIS APPEAL CHALLENGES LEARNED CIT(A)S ORDER DA TED 03.02.2014 UPHOLDING PENALTY OF RS.1,37,996/-, UNDER SECTION 271(1)(C) O F THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2007-08. 2. THE RELATED QUANTUM DISALLOWANCE OF RS.5,70,000/ - WAS IN RESPECT OF REIMBURSEMENT OF EXPENSES FOR LEVELLING OF LAND, CO NSTRUCTION OF COMPOUND WALL AND RELATED EXPENSES IN CONNECTION WITH SALE OF LAND. THE DISALLOWANCE WAS MADE FOR WANT OF SATISFACTORY SUPPORTING EVIDENCES, AND HAS NOW A TTAINED FINALITY. THERE IS ANOTHER RELATED SMALL ADDITION OF RS.67,919/- IN RESPECT OF INTEREST CREDITED IN BANK ACCOUNTS. THE ASSESSING OFFICER HAS IMPOSED THE IMPUGNED PENA LTY BY OBSERVING THAT HAD THE CASE WAS NOT BEEN PICKED UP FOR SCRUTINY ASSESSMENT , THE INCOME WOULD HAVE REMAINED UNDETECTED. THE ASSESSEE CARRIED THE MATTER IN APPE AL BEFORE THE CIT(A) BUT WITHOUT ANY SUCCESS. THE ASSESSEE IS NOW IN SECOND APPEAL BEFORE US. ITA NO. 1208/AHD/2014 SHRI MUKESHBHAI KALIDAS PATEL VS. ADIT A.Y. 2007-08 PAGE 2 OF 2 3. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF THE AP PLICABLE LEGAL POSITION. 4. WE FIND THAT THE ASSESSEE IS A NON-RESIDENT AND THE PRESENT ASSESSMENT IS BASICALLY ON ACCOUNT OF SALE OF LAND IN THE RELEVAN T PREVIOUS YEAR. THE EXPENSES ARE ALSO STATED TO HAVE BEEN INCURRED OVER A PERIOD OF TIME AND ARE CLAIMED AS COST OF IMPROVEMENT. THE FACT OF IMPROVEMENT HOWEVER IS ST ATED IN THE SALE DEED AND IS NOT EVEN DISPUTED. THE SMALL INTEREST CREDITS TO ASSES SEES ACCOUNT HAVING BEEN INADVERTENTLY LEFT OUT CANNOT BE STRAIGHTAWAY REJEC TED EITHER. IN VIEW OF THESE DISCUSSIONS, IN OUR CONSIDERED VIEW, IT WAS NOT A F IT CASE FOR IMPOSITION OF CONCEALMENT PENALTY UNDER SECTION 271(1)(C) OF THE ACT. WE, TH EREFORE, DELETE THE SAME. 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRO NOUNCED IN THE OPEN COURT ON THIS 27 TH OF OCTOBER, 2017. SD/- SD/- MAHAVIR PRASAD PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 27 TH DAY OF OCTOBER, 2017 **BT* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF TAKING DICTATION: ... .26.10.2017.....- ..PREPARED AS PER TWO PAGE MANUSC RIPT OF HONBLE AM WHICH IS ATTACHED WITH THIS CASE FILE ......................... 2. DATE OF TYPING & DRAFT ORDER PLACED BEFORE THE D ICTATING MEMBER: ........26.10.2017............... ... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: ....... 26.10.2017................. ........ 4. DT. ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT: .... 26.10.20 17........... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK: ...... 30.10.2017..................... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: ..... 7. THE DT. ON WHICH THE FILE GOES TO THE ASTT. REGISTR AR FOR SIGNATURE ON THE ORDER: .................. ....... 8. DATE OF DESPATCH OF THE ORDER: ................. ........