Sh. Suresh Singla, Panchkula V. DCIT, CC-II, Chandigarh

ITA 1470/CHANDI/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9484 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 13-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained expenditure; Set aside
• Section: 143(3); 153A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRISANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1470/CHD/2017 / ASSESSMENT YEAR : 2009-10 SHRI SURESH SINGLA, #1332, SECTOR 4, PANCHKULA VS. ! THE DCIT, CENTRAL CIRCLE-II, CHANDIGARH ' # ./ PAN NO: ABUPC8259J '$/ APPELLANT &' '$ / RESPONDENT ()*+ /ASSESSEE BY : SH. TEJ MOHAN SINGH, ADVOCATE *+ / REVENUE BY : SH. MANJIT SINGH, CIT DR , -*) .# /DATE OF HEARING : 29.08.2019 /0 *) .# / DATE OF PRONOUNCEMENT : 23.09. 2019 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 31.07.2017 OF THE COMMISSIONER OF INCOM E TAX (APPEALS )- 3, GURGAON [HEREINAFTER REFERRED TO AS CIT(A)] AGITATI NG THE LEVY OF PENALTY OF RS. 4,07,792/- BY THE ASSESSING OFFICER U/S 271AAA OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT'). 2. THE BRIEF FACTS OF THE CASE ARE THAT A SEARCH AC TION WAS CONDUCTED AT THE RESIDENCE OF THE ASSESSEE ON 16.01.2009. C ERTAIN DOCUMENTS WERE SEIZED DURING THE SEARCH ACTION AND ON THE BASIS OF THOSE SEIZED ITA NO. 1470-CHD-2017- SHRI SURESH SINGLA, PANCHKULA 2 DOCUMENTS, THE ASSESSING OFFICER MADE THE FOLLOWING ADDITIONS IN AN ASSESSMENT CARRIED OUT U/S 153A READ WITH SECTION 1 53B(1)(B) AND 143(3) OF THE ACT:- (I) ON THE BASIS OF PAGE 2 OF A-5 RS. 20,00,000 /- (II) ANNEXURE A-4 (HOUSEHOLD EXPENSE RS. 71,600/- (III) UNEXPLAINED EXPENDITURE (PG 16-34,A-6) RS . 20,05,692/- RS. 1,00,28,002/- 3. THE ASSESSING OFFICER ACCORDINGLY INITIATED PENA LTY PROCEEDINGS U/S 271AAA OF THE ACT AND IMPOSED THE IMPUGNED PENA LTY AMOUNTING TO RS. 4,07,792/- @ 10% OF THE CONCEALED INCOME. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER DATED 31.07.2019 OF THE TRIB UNAL PASSED IN ITA NO. 1045/CHD/2013 IN THE CASE OF THE ASSESSEE IN QUANTUM PROCEEDINGS, WHEREBY, THE ADDITIONS MADE IN RESPECT OF POINT NOS . (I) & (II) HAVE BEEN DIRECTED TO BE DELETED BY THE TRIBUNAL, WHEREAS, TH E ISSUE RELATING TO THE ADDITION MADE BY THE ASSESSING OFFICER VIDE POINT N O. (III), HAS BEEN SENT BACK FOR ADJUDICATION AFRESH. 4. IN VIEW OF THIS, THE VERY BASIS ON WHICH THE ASS ESSING OFFICER HAD MADE THE ADDITION HAS CEASED TO EXIST, AND AS ON TH E DATE THERE IS NO ITA NO. 1470-CHD-2017- SHRI SURESH SINGLA, PANCHKULA 3 ADDITION OR TAX LIABILITY EXISTING AGAINST THE ASSE SSEE / APPELLANT, THEREFORE, THE CONSEQUENT IMPUGNED PENALTY HAS NO LEGS TO STAND AND THE SAME IS ACCORDINGLY ORDERED TO BE DELETED. HOWEVER, IT IS MADE CLEAR THAT IN THE SET ASIDE PROCEEDINGS IN RESPECT OF POINT NO . (III) ABOVE, IF THE ASSESSING OFFICER WILL BE SATISFIED OR FOUND IT FI T A CASE FOR LEVY OF PENALTY WHILE ADJUDICATING ON THIS ISSUE, HE WILL B E AT LIBERTY TO INITIATE THE PENALTY ACCORDINGLY. IN VIEW OF THE ABOVE DIRECTIONS, THE IMPUGNED PENAL TY IN THIS CASE IS ORDERED TO BE DELETED. THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23.09.2019. SD/- SD/- ( . . / N.K. SAINI) ( ! / SANJAY GARG) '#$ / VICE PRESIDENT %& / JUDICIAL MEMBER DATED : 23.09.2019 .. 2*&)3454) / COPY OF THE ORDER FORWARDED TO : 1. '$ / THE APPELLANT 2. &' '$ / THE RESPONDENT 3. , 6) / CIT 4. , 6) ( )/ THE CIT(A) 5. 47 &)8 , . 8 , 9:;< / DR, ITAT, CHANDIGARH 6. ;= - / GUARD FILE 2 , / BY ORDER, > / ASSISTANT REGISTRAR ITA NO. 1470-CHD-2017- SHRI SURESH SINGLA, PANCHKULA 4