Shri Laxmanbhai Rambhai Jalu, Surat V. The ACIT.,Circle-3, Surat

ITA 1350/AHD/2011

• Counselvise Citation: 135020514 RSA 2011
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 09-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAVDR
• Keywords: Unexplained cash credit; Unexplained investment; Gift
• Section: 69C; 68

Judgement Text

, , , , , , ! !! !' '' ' ! ! ! !. .. .! !! !. .. .$%& $%& $%& $%& , ' ' ' ' ( ( ( ( IN THE INCOME TAX APPELLATE TRIBUNAL : D BENCH : AHMEDABAD (BEFORE HONBLE SHRI BHAVNESH SAINI, J.M. & HON BLE SHRI A.L.GEHLOT, A.M.) ' '' '. ITA NO. 1350/AHD./2011 : )*- 2005-06 SHRI LAXMANBHAI R. JALU, SURAT (-. /APPELLANT) -VS- (PAN : AB IPJ 5339C) ACIT, CIRCLE-3, SURAT ( /0-. /RESPONDENT ) ' '' '. ITA NO. 1746/AHD./2011 : )*- 2005-06 ACIT, CIRCLE-3, SURAT (-. /APPELLANT) -VS- SHRI LAXMANBHAI R. JALU, SURAT ( /0-. /RESPONDENT ) 1& 2 3 / APPELLANT BY : NONE (WRITTEN SUBMISSION) 4 2 3 / RESPONDENT BY : SHRI B.L.YADAV, D.R. 56 2 &' / DATE OF HEARING : 21/10/2011 7%) 2 &' / DATE OF PRONOUNCEMENT : 21/10/2011 / ORDER PER SHRI A.L.GEHLOT, ACCOUNTANT MEMBER : THESE ARE THE CROSS-APPEALS. THE ASSESSMENT YEAR I NVOLVED IS 2005-06. THESE APPEALS ARE INSTITUTED AGAINST THE ORDER OF THE LD. CIT(A)-II, SURAT DATED 20.04.2011. THE COMMON GROUND RAISED IN CROSS-APPEALS IS IN RES PECT OF LEVY OF PENALTY UNDER SECTION 271(1)(C). 2. BRIEF FACTS OF THE CASE ARE THAT THE ADDITIONS O F RS.11,42,100/- WAS MADE UNDER SECTION 69C ON ACCOUNT OF UNEXPLAINED INVESTMENT AN D RS.3,50,000/- UNDER SECTION 68 ON ACCOUNT OF UNEXPLAINED CASH CREDIT/GIFT. THE AO LEVIED THE PENALTY RELYING ON THE JUDGEMENT OF THE HONBLE APEX COURT IN THE CASE OF UNION OF INDIA VS- DHARMENDRA ITA NO. 1350&1746-AHD-11 2 TEXTILE PROCESSORS (SC) REPORTED IN 306 ITR 277. TH E PENALTY LEVIED BY THE AO BEING 100% OF THE TAX SOUGHT TO BE EVADED OF WHICH CALCUL ATION COMES TO RS.5,02,240/-. 3. AT THE TIME OF HEARING, NONE IS PRESENT FROM THE SIDE OF THE ASSESSEE. HOWEVER, WRITTEN SUBMISSIONS HAVE BEEN FILED. 4. THE CIT(A) CANCELLED THE PENALTY IN RESPECT OF T HE ADDITION UNDER SECTION 69C ON THE GROUND THAT THE ITAT, AHMEDABAD BENCH IN QUA NTUM MATTER, DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. HOWEVER, THE CIT(A) CON FIRMED THE PENALTY IN RESPECT OF THE ADDITION UNDER SECTION 68, BEING GIFT AMOUNT OF RS.3,50,000/-. THE REVENUE AND THE ASSESSEE BOTH ARE IN APPEAL. 5. AFTER HEARING THE LD. D.R., WE FIND THAT THE CIT (A) HAS RIGHTLY CANCELLED THE PENALTY IN RESPECT OF ADDITION UNDER SECTION 69C AS THE ADDITION ITSELF IS DELETED BY THE ITAT IN QUANTUM MATTER. IT HAS ALSO BEEN NOTICED TH AT ANOTHER ADDITION OF RS.3,50,000/- HAS ALSO BEEN DELETED BY THE ITAT, AH MEDABAD D BENCH IN QUANTUM APPEAL, VIDE ORDER DATED 31.05.2011 IN ITA NO.4044/ AHD/2008, IN THE LIGHT OF THE FACT THAT IN QUANTUM MATTER, ADDITIONS HAVE BEEN DELETED . THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT WHEN THERE IS NO ADDITION IN Q UANTUM MATTER, PENALTY UNDER SECTION 271(1)(C) BECOMES INFRUCTUOUS. WE, THEREFOR E, CANCEL THE PENALTY SUSTAINED BY THE CIT(A) ON THE ADDITION OF RS.3,50,000/- AND CON FIRM THE ORDER OF THE CIT(A) DELETING THE PENALTY ON THE ADDITION OF RS.11,42,10 0/-. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED WHEREAS THE APPEAL FILED BY THE REVENUE IS DISMISSED. 8 2 7%) 9'* 21/10 /2011 % : 2 $6 ; THIS ORDER PRONOUNCED IN THE OPEN COURT ON 21/10/2011. SD/- SD/- (BHAVNESH SAINI) (A.L.GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 21/10/2011 ITA NO. 1350&1746-AHD-11 3 2 22 2 /&< /&< /&< /&< =<)&* =<)&* =<)&* =<)&*- -- - 1. -. 2. /0-. 3. '' & 5A 4. 5A- - 5. <$ /& , , ; 6. $ E8 , F/ '4 , ; TALUKDAR/ SR. P.S.