Shri Rajendra Nagesh Bhat, Karwar V. Income Tax Officer, Ward - 2, Karwar,

ITA 122/PAN/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1395 (ITAT-PANAJI)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 01-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SUNDARESAN S LD
• Assessee Lawyers: R K PIKALE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI N.S. SAINI, HON'BLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 122/PNJ/2015 : (A.Y 2010 - 11) RAJENDRA NAGESH BHAT RAJLAXMI JEWELLERS, SADASHIVGAD , KARWAR 581 352. PAN : ABLPB4145M (APPELLANT) VS. INCOME TAX OFFICER, WARD - 2, KARWAR (RESPONDENT) ASSESSEE BY : R.K. PIKALE REVENUE BY : DR. SUNDARESAN S., LD. DR DATE OF HEARING : 24/08/2015 DATE OF PRONOUNCEMENT : 24/08/2015 O R D E R PER GEORGE MATHAN : 1. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), MANGALORE IN ITA NO. 53/MNG/CIT(A)MNG/13 - 14 DT. 2.1.2015 FOR THE A.Y 2010 - 11 AGAINST THE CONFIRMATION OF LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. SHRI R.K. PIKALE, CA LD. AR REPRESENTED ON BEHALF OF THE ASSESSEE AND DR. SUNDARESAN S., LD. DR REPRESENTED ON BEHALF OF THE REVENUE. 2. IT WAS SUBMITTED BY THE LD. AR THAT THE ASSESSEE WAS SPECIFIC IN ARGUING HIS GROUND IN THE REVISED GROUND NO. 2(I) WHICH READS A S FOLLOWS : 2 ITA NO. 122/PNJ/2015 (A.Y : 2010 - 11) 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL IN LAW, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) WAS NOT JUSTIFIED IN CONFIRMING THE PENALTY ORDER DATED 23.09.2013; (I) BECAUSE LEVY OF PENALTY U/S 271(1)(C) FOR CONCEALING THE PARTICULARS OF INCOME (TRANSACTIONS IN THE SAVING BANK ACCOUNT NO. 2720100017161 WITH AXIS BANK) OR FOR FURNISHING INACCURATE PARTICULARS OF SUCH INCOME IS ILLEGAL AND BAD IN LAW. IT WAS THE SUBMISSION THAT AS THE AO DID NOT GIVE A CLEAR - CUT FINDING R EGARDING THE PENALTY BEING IMPOSED ON CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS, IN VIEW OF THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF JYOTI LTD. REPORTED IN (2013) 7 TAXCORP (DT) 55076 (GUJARAT) , THE PENALTY AS LEVI ED BY THE AO, AND AS CONFIRMED BY THE CIT(A) WAS LIABLE TO BE CANCELLED. IT WAS ALSO THE SUBMISSION THAT IN A SUBSEQUENT DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF WHITEFORD INDIA LTD. REPORTED IN (2013) 7 TAXCORP (DT) 55722 (GUJARAT), THE HON'BLE HIGH COURT HAS HELD SIMILARLY. IT WAS THE SUBMISSION THAT THE PENALTY, AS LEVIED BY THE AO , AND AS CONFIRMED BY THE LD. CIT(A) WAS LIABLE TO BE CANCELLED. 3. IN REPLY, THE LD. DR VEHEMENTLY SUPPORTED THE ORDER OF THE AO AND THE LD. CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IT IS NOTICED THAT THE AO IN THE ASSESSMENT ORDER AT PAGE 6 HAS HELD AS FOLLOWS : THE ASSESSEE HAS CONCEALED TRANSACTIONS IN THE BANK ACCOUNT AND THEREBY CONCEALED THE PARTICULARS OF HIS INCOME OR FURNISHED INACCURATE PARTICULARS OF SUCH INCOME AND, THEREFORE, PENALTY PROCEEDINGS ARE INITIATED UNDER SECTION 271(1)(C) OF THE ACT. 3 ITA NO. 122/PNJ/2015 (A.Y : 2010 - 11) AS IT IS NOTICED T HAT IN THE COURSE OF THE ASSESSMENT THE AO HAS NOT BEEN ABLE TO SPECIFICALLY POINT OUT WHETHER THE PENALTY IS BEING INITIATED FOR CONCEALMENT OF INCOME OR FURNISHING INACCURATE PARTICULARS OF INCOME, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID DOWN BY THE H ON'BLE GUJARAT HIGH COURT IN THE CASE OF JYOTI LTD. REFERRED TO SUPRA AS ALSO THE DECISION IN THE CASE OF WHITEFORD INDIA LTD. REFERRED TO SUPRA , THE PENALTY AS LEVIED BY THE AO, AND AS CONFIRMED BY THE LD. CIT(A) STANDS CANCELLED. 5. IN THE RESULT, THE A PPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24/08/2015. S D / - (N.S. SAINI) ACCOUNTANT MEMBER S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 24/08/ 201 5 *SSL* COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 4 ITA NO. 122/PNJ/2015 (A.Y : 2010 - 11) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 24/08/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 24/08/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 2 5 /08/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 2 5 /08/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 2 5 /08/2015 SR.PS 6. DATE OF PRONOUNCEMENT 24/08/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 2 5 /08/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER