M/s Ajay Kumar Sood Engineers & Contractors, Chotta Shimla V. DCIT, CC-II, Chandigarh

ITA 1363/CHANDI/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4503 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 12-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIV SWAROOP SINGH
• Keywords: Unexplained expenditure; Condonation of delay
• Section: 271(1)(c)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH , . '.., # $, %& BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ./ ITA NOS. 1362, 1363 & 1364/CHD/2017 / ASSESSMENT YEARS : 2006-07, 2007-08 & 2008-09 M/S AJAY KUMAR SOOD ENGINEERS & CONTRACTORS, SANJAY SADAN, CHOTTA SHIMLA, H.P.171002 DY. CIT, CENTRAL CIRCLE-II, CHANDIGARH ./PAN NO: AAKFA4648J / APPELLANT /RESPONDENT ! /ASSESSEE BY : SH. ASHOK GOYAL, CA ' ! / REVENUE BY : SH. SHIV SWAROOP SINGH, SR.DR # $ % /DATE OF HEARING : 28.05.2019 &'() % / DATE OF PRONOUNCEMENT : 30.05.2019 %'/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE CAPTIONED APPEALS HAVE BEEN PREFERRED BY THE AS SESSEE AGAINST THE SEPARATE ORDERS DATED 14.6.2017 OF THE COMMISSI ONER OF INCOME TAX(APPEALS)-3, GURGAON [HEREINAFTER REFERRED TO AS CIT(A)] RESPECTIVELY. 2. ALL THE APPEALS OF THE ASSESSEE ARE BARRED BY LI MITATION PERIOD 03 DAYS. A SEPARATE APPLICATION FOR CONDONATION OF DEL AY HAS BEEN MOVED. ITA NOS. 1362, 1363 & 1364/CHD/2017 - M/AS AJAY KUMAR SOOD ENGINEERS & CONTRACTORS, SHIML A 2 CONSIDERING THE GROUNDS MENTIONED IN THE APPLICATIO N FOR CONDONATION OF DELAY AND SHORTNESS OF THE DELAY PERIOD OF ONLY 03 DAYS, THE DELAY IN FILING THE PRESENT APPEALS IS HEREBY CONDONED. 3. THE COMMON ISSUE INVOLVED IN ALL THE APPEALS IS RELATING TO THE LEVY OF PENALTY U/S 271(1)(C) OF THE INCOME-TAX AC T, 1961 (IN SHORT 'THE ACT'). FIRST WE TAKE UP ITA NO. 1362/CHD/2017 FOR ADJUDICATION. ITA NO. 1362/CHD/2017 (A.Y. 2006-07) 4. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE COMMON ORDER DATED 13.6.2018 PASSE D IN ITA NOS. 319, 320, 321, 322, 323 & 325/CHD/2014 RELATING TO THE A SSESSMENT YEARS 2005-06 TO 2009-10 AND 2011-12. THE LD. COUNSEL HA S SUBMITTED THAT THE QUANTUM ADDITIONS IN RELATION TO WHICH THE IMPU GNED PENALTY HAS BEEN LEVIED STOOD DELETED BY THE SAID ORDER OF THE TRIBUNAL. THE TRIBUNAL IN PARA 12.3 OF THE SAID ORDER OBSERVED THAT THE IM PUGNED ADDITIONS WERE MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLA INED EXPENDITURE. HOWEVER, THE TRIBUNAL OBSERVED THAT THE EXPENDITURE WAS DULY EXPLAINED WITH REGARD TO THE CASH AVAILABLE AND CASH WITHDRAW ALS AND, AS SUCH, NO ADDITIONS ON THIS ACCOUNT WERE CALLED FOR. THEREFOR E, THE ADDITIONS MADE BY THE ASSESSING OFFICER WERE ORDERED TO BE DELETED . ITA NOS. 1362, 1363 & 1364/CHD/2017 - M/AS AJAY KUMAR SOOD ENGINEERS & CONTRACTORS, SHIML A 3 SINCE THE VERY BASIS ON WHICH THE IMPUGNED PENALTY WAS LEVIED HAS CEASED TO EXIST, THEREFORE, THE IMPUGNED PENALTY HA S NO LEGS TO STAND UPON, THE SAME IS ACCORDINGLY ORDERED TO BE DELETED . THE APPEAL OF THE ASSESSEE STANDS ALLOWED. ITA NO. 1363/CHD/2017 (A.Y. 2007-08 ): 5. THE FACTS AND CIRCUMSTANCES OF THE CASE ARE ALMO ST IDENTICAL TO THAT OF ASSESSMENT YEAR 2006-07. IN THIS CASE, THE ASSESSING OFFICER HAD MADE THE ADDITION OF UNEXPLAINED EXPENDITURE AMOUNT ING TO 19,68,805/-. THE TRIBUNAL VIDE ORDER DATED 13.6.201 8 (SUPRA) OBSERVED THAT THE ASSESSEE HAD RECONCILED THE EXPENDITURE WI TH THE AVAILABILITY OF CASH / CASH WITHDRAWALS EXCEPT AN AMOUNT OF 25,000/- AND, HENCE, THE TRIBUNAL CONFIRMED THE ADDITION OF 25,000/- AGAINST THE ADDITION OF 19.68 LACS MADE BY THE ASSESSING OFFICER. 6. CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE C ASE, ONLY BECAUSE THE ASSESSEE COULD NOT RECONCILE THE ENTRY OF 25,000/- RELATING TO THE EXPENDITURE VIS--VIS EXPLANATION OF THE ASSESSEE REGARDING REMAINING AMOUNT OF 19 LACS, WE DO NOT FIND IT A CASE OF CONCEALMENT O F PARTICULARS OF INCOME OR FURNISHING OF INACCURATE P ARTICULARS OF INCOME. THE PENALTY LEVIED BY THE ASSESSING OFFICER ON THIS ISSUE IS, THEREFORE, ORDERED TO BE DELETED. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWE D. ITA NOS. 1362, 1363 & 1364/CHD/2017 - M/AS AJAY KUMAR SOOD ENGINEERS & CONTRACTORS, SHIML A 4 ITA NO. 1364/CHD/2017 (A.Y. 2009-10) 7. THE QUANTUM ADDITION RELATING TO THE UNEXPLAINED EXPENDITURE SINCE STOOD DELETED FOR THE ASSESSMENT YEAR UNDER C ONSIDERATION, HENCE, THE CONSEQUENTIAL PENALTY HAS NO LEGS TO STAND UPON AND THE SAME IS ORDERED TO BE DELETED. THE APPEAL OF THE ASSESSEE, THEREFORE, STANDS ALLOWED. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE HEREBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.05.2019 SD/- SD/- ( ' . . , # $ / B.R.R. KUMAR) %& / ACCOUNTANT MEMBER ( / SANJAY GARG ) / JUDICIAL MEMBER DATED : 30 /05/2019 .. /'+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR