Ravjibhai Dedakia, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-5(2), RAJKOT-GUJARAT

ITA 130/RJT/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56761 (ITAT-RAJKOT)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-10-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 13-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRISHNA PRABHAKAR
• Assessee Lawyers: DM RINDANI
• Keywords: Initiation of penalty proceedings
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI T.K. SHARMA (JM) AND SHRI A.L. GEHLOT ( AM) I.T.A. NO.130/RJT/20111 (ASSESSMENT YEAR 2000-01) RAVJIBHAI DEDAKIA VS THE ITO, WD.5(2) RAVI DARSHAN RAJKOT 10 TH FLOOR, AMIN MARG RAJKOT PAN : ADPPP7802H (APPELLANT) (RESPONDENT) DATE OF HEARING : 28-11-2011 DATE OF PRONOUNCEMENT : 30-11-2011 APPELLANT BY : SHRI DM RINDANI RESPONDENT BY: SHRI KRISHNA PRABHAKAR O R D E R PER T.K. SHARMA (JM) THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER D ATED 05-01-2011 PASSED BY THE CIT(A)-IV, RAJKOT CONFIRMING PENALTY OF RS.2,39,703 LEVIED BY ASSESSING OFFICER U/S 271(1)(C) OF THE I.T. ACT, 19 61 FOR THE ASSESSMENT YEAR 2000-01. 2. BRIEFLY STATED, THE FACTS ARE THAT THE ASSESSEE IS AN INDIVIDUAL. FOR THE ASSESSMENT YEAR UNDER APPEAL HE FILED THE RETURN OF INCOME DECLARING INCOME AT NIL AND AGRICULTURAL INCOME OF RS.2,85,872. ASSESS ING OFFICER FRAMED THE ASSESSMENT U/S 143(3) ON 24-03-2003 DETERMINING TOT AL INCOME AT RS.7,76,372 AND ALSO INITIATED PENALTY PROCEEDINGS U/S 271(1)(C ) OF THE I.T. ACT, 1961. SUBSEQUENTLY, THE ASSESSING OFFICER, VIDE ORDER DAT ED 08 TH MARCH, 2005 LEVIED PENALTY OF RS. 2,39,703 U/S 271(1)(C) OF THE ACT. THIS PENALTY WAS CONFIRMED BY ITA NO.130/RJT/2011 2 THE LD.CIT(A)-IV, RAJKOT IN THE IMPUGNED ORDER DATE D 05-01-2011. AGGRIEVED BY THE ORDER OF LD.CIT(A) ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. AT THE TIME OF HEARING, ON BEHALF OF THE ASSESSE E, SHRI DM RINDANI APPEARED AND POINTED OUT THAT IN THE IMPUGNED ORDER , THE LD.CIT(A) CONFIRMED THE PENALTY AS THERE WAS NO COMPLIANCE TO THE NOTICE OF HEARING. HE POINTED OUT THAT WHEN THE ASSESSING OFFICER LEVIED THE PENALTY, THE QUANTUM APPEAL OF THE ASSESSEE WAS PENDING BEFORE THE TRIBUNAL. THE ITAT , VIDE ORDER DATED 13-09- 2005 IN APPEAL NO.877/RJT/2003 RESTORED BOTH THE AD DITIONS (ADDITION OF RS.8,60,872 MADE BY ASSESSING OFFICER BY TREATING A GRICULTURAL INCOME AS NON AGRICULTURAL INCOME AND UNDISCLOSED INCOME OF RS.6, 15,500) ARE SET AIDE AND RESTORED TO THE FILE OF THE ASSESSING OFFICER. IN PURSUANC3E OF ORDER OF TRIBUNAL DATED 13-09-2005 THE ASSESSING OFFICER FRAMED THE A SSESSMENT U/S 143(3) R.W.S. 255 WHEREIN ALSO HE INITIATED PENALTY PROCEEDINGS U /S 271(1)(C) OF THE ACT. IN THE LIGHT OF INITIATION OF PENALTY PROCEEDINGS IN THE O RDER U/S 1`43(3) R.W.S. 255 DATED 28-12-2006, THE COUNSEL OF THE ASSESSEE POINTED OUT THAT THE IMPUGNED ORDER OF LD.CIT(A) CONFIRMING THE PENALTY OF RS. 2,39,703/- LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) BE CANCELLED. 4. SHRI KRISHNA PRABHAKAR, THE LD.DR APPEARED FOR T HE REVENUE AND COULD NOT CONTROVERT THE AFORESAID SUBMISSIONS MADE BY THE LD .COUNSEL FOR THE ASSESSEE. 5. HAVING HEARD BOTH THE SIDES, WE HAVE CAREFULLY G ONE THROUGH THE ORDER OF AUTHORITIES BELOW. BOTH THE ADDITIONS WHICH WERE M ADE BY THE ASSESSING OFFICER IN ORDER U/S 143(3) DATED 24-03-2003 HAVE BEEN SET ASIDE BY THE TRIBUNAL TO THE ITA NO.130/RJT/2011 3 FILE OF ASSESSING OFFICER VIDE ORDER DATED 13-09-20 05 IN ITA NO.877/RJT/2003 FOR THE ASSESSMENT YEAR 2000-01. IN VIEW OF THIS, THE PENALTY LEVIED U/S 271(1)(C) ON THE BASIS OF ADDITION MADE IN THE ORIGINAL ASSESSME NT ORDER IS HEREBY CANCELLED WITH THE OBSERVATION THAT THE ASSESSING OFFICER IS AT LIBERTY TO LEVY THE PENALTY ON THE BASIS OF PENALTY INITIATED U/S 271(1)(C) IN ORD ER U/S 143(3) R.W.S. 255 DATED 28- 12-2006.IN ACCORDANCE WITH LAW. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. THIS ORDER HAS BEEN PRONOUNCED ON THE DATE AS MENTI ONED ABOVE. SD/- SD/- (A.L. GEHLOT) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 30 NOVEMBER, 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-IV, RAJKOT 4. THE CIT-III, RAJKOT 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT