Jayanta Kumar Basu, Kolkata V. ITO, Ward-20(1), Kolkata, Kolkata

ITA 1276/KOL/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3138 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2013
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 06-09-2012
• Court: TRIBUNAL
• Department Lawyers: D MUKHOPADHYAY LD
• Assessee Lawyers: JAYANTA KUMAR BASU LD
• Keywords: Salary income; Bonafide mistake

Judgement Text

ITA NO. 1276/KOL/2012C-JM 1 , C IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH: KO LKATA () , !'!# 1%& , , ( BEFORE SRI PRAMOD KUMAR, AM & SRI GEORGE MATHAN, JM ) ' / I.T.A NO. 1276/KOL/2012 (&' )*/ ASSESSMENT YEAR :2007-08 JAYANTA KUMAR BASU VS. INCOME-TAX OFFICE R PAN: AEBPB 6767Q WARD 20(1), KOLKATA ( %, /APPELLANT ) ( -%,/ RESPONDENT ) %, / FOR THE APPELLANT/ASSESSEE: . / SHRI JAYANTA KUMAR BASU, LD. ASSESSEE -%, / FOR THE RESPONDENT/DEPARTMENT: . / SHRI D. MUKHOPADHYAY, LD. SR.DR &/ 0 1 /DATE OF HEARING: 08-07-2013 2) 0 1 /DATE OF PRONOUNCEMENT: 08-07-2013 3 /ORDER !'!# 1%& , SHRI GEORGE MATHAN, JUDICIAL MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX, (APPEALS)-XIV, KOLKATA IN APPEAL NO. 563/CIT(A)-XIV/11-12 DATED 27-06- 2012 FOR THE ASSESSMENT YEAR 2007-08. 2. SHRI JAYANTA KUMAR BASU, LEARNED ASSESSEE APPEA RED IN PERSON AND SHRI D. MUKHOPADHYAY, LEARNED. SR..DR APPEARED ON BEHALF OF THE REVENUE. 3. IN THE ASSESSEES APPEAL, THE ASSESSEE HAS RAI SED FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. COMMISSIONER (APPEALS) HAS NOT BEEN JUSTIFIED IN CONFIRMING THE IMPOSITION OF PENALTY U/S. 271(1) ( C) AMOUNTING TO RS.8,598/- BY THE INCOME-TAX OFFICER. 2. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING OF THE APPE AL. 4. IT WAS SUBMITTED BY THE LD. ASSESSEE THAT ON AC COUNT OF AN OMISSION ON THE PART OF THE ASSESSEE IN HIS RETURN OF INCOME IN RESPECT OF THE INTEREST INCOME FROM THE SBI (SB ACCOUNT) AND ACCRUED INTEREST ON THE NSC AN ADDITION OF RS. 42, 150/- HAS BEEN MADE IN THE ASSESSMENT. IT WAS THE SUBMISSION THAT ON ACCOUNT OF THIS ADDITION MADE IN THE COURSE OF THE ITA NO. 1276/KOL/2012C-JM 2 ASSESSMENT, PENALTY U/S. 271(1)(C ) OF THE ACT HAD BEEN LEVIED BY THE ASSESSING OFFICER TO THE EXTENT OF RS. 8,598/-. IT WAS THE SUBMISSION THAT T HE ASSESSEE IS A GOVT. EMPLOYEE AND HE HAD PREPARED HIS OWN RETURN FOR THE PURPOSE OF INCOME- TAX. IT WAS THE SUBMISSION THAT THE MISTAKE IN THE RETURN FILED WAS IN RESPECT OF THE NON-INCLUSION OF AMOUNT OF THE INTEREST ON THE SBIS SB A/C AND INTEREST ACCRUED ON THE NSC. IT WAS THE SUBMISSION THAT EVEN ASSUMING ADDITION IS TO BE SUSTAINED, STILL DEDUCTION U/S. 8 0L WOULD PARTICULARLY NEGATE THIS ADDITION. IT WAS THE SUBMISSION THAT THE ASSESSEE HAS ACCEPTED THE ASSESSMENT ORDER. IT WAS THE SUBMISSION THAT THE MISTAKE OF THE ASSESSEE IN TH E RETURN WAS BECAUSE OF THE ASSESSEE WAS NOT CLAIMING THE DEDUCTION U/S. 80L OF THE ACT. IT WAS THE SUBMISSION THAT BONAFIDE MISTAKE OF THE ASSESSEE HAD NOT BEEN ACCEPTED BY THE ASSESS ING OFFICER AND THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) HAD CONFIRMED THE LEVY OF PENALTY.. IT WAS THE SUBMISSION THAT PENALTY AS LEVIED BY THE ASSESSIN G OFFICER AND AS CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) MAY BE DELETED . 5. IN REPLY, THE LEARNED SR.DR HAS SUBMITTED THAT T HE ASSESSEE HAS ACCEPTED THE ASSESSMENT, WHEREIN THE ADDITIONS HAVE BEEN MADE. THE PENALTY AS LEVIED BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LEARNED COMMISSION ER OF INCOME-TAX (APPEALS) WAS LIABLE TO BE UPHELD. IT WAS THE SUBMISSION BY THE LEARNED SR.DR THAT THERE WAS NO RECORD TO SHOW THAT INCOME WAS SUPPRESSED UNINTENTIONAL. HE HAS V EHEMENTLY SUPPORTED THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERU SAL OF THE ASSESSMENT ORDER DATED 30-11-2009 CLEARLY SHOWS THAT THE ADDITION HAS BEE N MADE ON ACCOUNT OF NON INCLUSIONS OF THE AMOUNT OF ACCRUED INTEREST ON NSC AND INTEREST ON S.B ACCOUNT. THE DEDUCTION U/S. 80L OF THE ACT HAS NOT BEEN GRANTED BY THE ASSESSING OF FICER IN THE COURSE OF THE ASSESSMENT. FURTHER, A PERUSAL OF THE ASSESSMENT ORDER SHOWS T HAT THE ASSESSEE IS AN INDIVIDUAL AND DERIVES INCOME FROM SALARY. ADMITTEDLY, THE INCOME BEING SALARY AND THE ASSESSEE BEING INDIVIDUAL, HE WOULD BE FOLLOWING THE CASH SYSTEM O F ACCOUNTING. CONSEQUENTLY, THE ACCRUED INTEREST ON NSC WOULD NOT BE LIABLE TO TAX. THIS V IEW IS A POSSIBLE VIEW. IN THE CIRCUMSTANCES, JUST BECAUSE THE ASSESSEE HAS ACCEPT ED THE ADDITION, IT WOULD NOT MEAN THAT THE ASSESSEE HAS CONCEALED HIS PARTICULARS OF INCOME. IN FACT, THE ADDITION AS MADE IN THE ASSESSMENT ORDER ITSELF IS A SUBJECT MATTER OF SUBS TANTIAL DEBATE. IN THE CIRCUMSTANCES, WE ARE ITA NO. 1276/KOL/2012C-JM 3 OF THE VIEW THAT THE PENALTY AS LEVIED BY THE ASS ESSING OFFICER AND AS CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) IS NOT SUSTAINABLE ON THE FACTS. CONSEQUENTLY, THE PENALTY AS LEVIED BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) TO THE EXTENT OF RS. 8,598/- STANDS CANCELLED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED AS STATED ABOVE. . 4 3 5 & 6 47 THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON 08- 07-2013 - SD/- SD/- *PP/SPS 3 0 ((8 98): / COPY OF THE ORDER FORWARDED TO: 1. . %, / THE APPELLANT : SHRI JAYANTA KUMAR BASU 1/1, CHA NDI BASU LANE, KOL-85. 2 -%, / THE RESPONDENT: INCOME-TAX OFFICER, WARD 20(1), 169 A.J.C BOSE ROAD, KOL-14. 3 4. . (3& / THE CIT (3& ( )/ THE CIT(A) 5 . ;(6 (& / DR, KOLKATA BENCH 6 . GUARD FILE . -8 (/ TRUE COPY, 3&/ BY ORDER, 4 ! /ASSTT REGISTRAR ( . , ) ( PRAMOD KUMAR, ACCOUNTANT MEMBER) ( !'!# 1 % & , ) (GEORGE MATHAN, JUDICIAL MEMBER) ( (( ( 1 1 1 1 ) )) ) DATE 08 - 07 -2013