Manilal Jethalal Soni, Ahmedabad V. Income Tax Officer, Ward-5(2)(5), Ahmedabad

ITA 1284/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3844 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 17-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NK GOEL
• Assessee Lawyers: A C SHAH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ I.T.A. NO. 1284/AHD/2018 ( / ASSESSMENT YEAR : 2012-13) MANILAL JETHALAL SONI 210, SUPER MALL CG ROAD NAVRANGPURA AHMEDABAD 380 009 / VS. THE ITO WARD-5(2)(5) AHMEDABAD-380 009 ./ ./ PAN/GIR NO. : ACIPS 7509 L ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI A.C.SHAH, AR / RESPONDENT BY : SHRI N.K. GOEL, SR.DR / DATE OF HEARING 28/02/2020 !'# / DATE OF PRONOUNCEMENT 28/02/2020 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LD.COMMISSIONER OF INCOME TAX(APPEALS)-5, AHMEDABAD [CIT(A) IN SHORT] DATED 21/03/2018 RELEVANT TO ASSESSMENT Y EAR (AY) 2012-13. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO.1284/AHD /2018 MANILAL JETHALAL SONI VS. ITO ASST.YEAR 2012-13 - 2 - 1. THE LEARNED CIT(A) HAS ERRED IN CONFIRMING PART IAL AMOUNT OF PENALTY IN RESPECT OF ADDITION OF RS.2,40,000 BEING SALARY PAID TO SMT.HARSHABEN SONI. 2. THE LEARNED CIT(A) HAS FAILED TO APPRECIATE ABO UT THE NATURE OF PAYMENT AND BY WRONGLY HOLDING THAT THE ASSESSEE HA S FURNISHED INACCURATE PARTICULARS OF INCOME. 3. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAI NST SUSTAINING THE PENALTY REGARDING DISALLOWANCE OF SALARY OF RS.2,40 ,000/-. 4. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE HAS FILED HIS RETURN OF INCOME ON 18/09/2012 DECLARING TOTAL INCOME OF RS.4 ,59,310/-. THE CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSME NT AND THE ASSESSMENT U/S.143(3) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 12/02/2015 THEREBY THE ASSESSING OFFICER (AO' IN SHORT) MADE DISALLOWANCE ON ACCOUN T OF EXCESSIVE PAYMENT OF SALARY, INTEREST PAID TO CLOSE RELATIVE AND DISALLOWANCE OF LOANS CLAIMED TURNOVER REGARDING MCX TRANSACTIONS. 4.1. ASSESSING OFFICER HAS ALSO INITIATED PENALTY PROCEEDINGS. THE MATTER TRAVELLED UPTO THE STAGE OF TRIBUNAL AND THE APPEAL OF THE ASSESSEE WAS PARTLY ALLOWED. HOWEVER, IN RESPECT OF ADDITIO N OF RS.2,40,000/- THE SAME WAS SUSTAINED. THEREAFTER, THE ASSESSING OF FICER IMPOSED PENALTY ON THIS DISALLOWANCE. ITA NO.1284/AHD /2018 MANILAL JETHALAL SONI VS. ITO ASST.YEAR 2012-13 - 3 - 5. AGGRIEVED ASSESSEE PREFERRED AN APPEAL BEFORE T HE CIT(A), WHO DISMISSED THE APPEAL. 6. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), NOW T HE ASSESSEE IS FURTHER IN APPEAL BEFORE US. 7. THE LD.COUNSEL FOR THE ASSESSEE VEHEMENTLY ARGUE D THAT THE ACTION OF THE LOWER AUTHORITIES IS UNJUSTIFIED AGAINST THE PRINCIPLES OF LAW. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSE SSEE HAS DEMONSTRATED THE PARTICULARS OF INCOME. 8. ON THE CONTRARY, LD.SR.DR OPPOSED THE SUBMISSI ONS OF THE LD.COUNSEL FOR THE ASSESSEE AND SUBMITTED THAT THE ASSESSEE FAILED TO SUPPORT ITS CLAIM BY MATERIAL EVIDENCES. 9. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MA TERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE OBJECTION OF THE ASSESSING OFFICER IN THE ASSES SMENT ORDER IS THAT SALARY HAS BEEN PAID AT THE FAG END OF THE YEAR. H ENCE, THE DISALLOWANCE IS BASED ON SUSPICION OF THE ASSESSING OFFICER. FU RTHER, THE ASSESSING OFFICER HAS NOT POINTED OUT HOW THE ASSESSEE HAS FI LED INACCURATE PARTICULARS OF INCOME. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE, WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENA LTY. ITA NO.1284/AHD /2018 MANILAL JETHALAL SONI VS. ITO ASST.YEAR 2012-13 - 4 - 10. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE COURT ON 28 TH FEBRUARY-2020 AT AHMEDABAD SD/- SD/- ( AMARJIT SINGH) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 28/ 02 /2020 &.., .(../ T.C. NAIR, SR. PS !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ , / CONCERNED CIT 4. , ( ) / THE CIT(A)-AHMEDABAD-5. 5. /01 ((*+ , *+# , ) / DR, ITAT, AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER, / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 28.2.20 (DICTATION-PAD 7- PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..28.2.20 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.28.2.20 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 28.2.20 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER