Jagdeep Singh bhati, New Delhi V. ITO, New Delhi

ITA 1471/DEL/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7184 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 07-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 18-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS RISHPAL BEDI
• Assessee Lawyers: R K TANDON; POOJA ROHATGI CAS
• Keywords: Revised return
• Section: 139(5)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I: NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.1471/DEL/2016 ASSESSMENT YEAR : 2010-11 JAGDEEP SINGH BHATI, B-106, II FLOOR, NITI BAGH, NEW DELHI. PAN: AFCPB1471P VS. ITO, WARD-72(2), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.K. TANDON & MS POOJA ROHATGI, CAS. DEPARTMENT BY : MRS RISHPAL BEDI, JCIT DATE OF HEARING : 07.06.2016 DATE OF PRONOUNCEMENT : 07.06.2016 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER PASSED BY THE CIT(A) ON 8.1.2016 CONFIRMING PENALTY OF RS.67, 233/- IMPOSED BY THE ASSESSING OFFICER (AO) U/S 271(1)(C) OF THE INC OME-TAX ACT, 1961 ITA NO.1471/DEL/2016 2 (HEREINAFTER ALSO CALLED THE ACT) IN RELATION TO THE ASSESSMENT YEAR 2010-11. 2. BRIEFLY STATED, THE FACTS OF THE CASE AS RECORDE D IN THE ASSESSMENT ORDER ARE THAT THE ASSESSEE FILED HIS RETURN DECLAR ING INCOME OF RS.4,20,426/-. A REVISED RETURN WAS FILED ON 22.3. 2011, INTER ALIA , DECLARING INTEREST INCOME OF RS.2,38,993/-. THE AO RECORDED THAT SINCE THE REVISED RETURN WAS FILED AFTER THE ISSUE OF NOT ICE U/S 143(2), THE SAME WAS LIABLE TO BE REJECTED. HE MADE AN ADDITION OF RS.2,38,993/-, BEING THE UNDISCLOSED INTEREST INCOME, ON WHICH SUCH PENA LTY WAS IMPOSED, WHICH CAME TO BE UPHELD IN THE FIRST APPEAL. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. THE AO HAS IMPOSED THE PENALTY QUA THE INTEREST INCOME OF RS.2,38,993/- WHICH WAS OFFERED BY THE AS SESSEE IN THE REVISED RETURN OF INCOME ON THE GROUND THAT SUCH RE VISED RETURN WAS FILED AFTER THE ISSUE OF NOTICE U/S 143(2) OF THE ACT. I HAVE GONE THROUGH A COPY OF NOTICE ISSUED U/S 143(2) WHICH IS AVAILABLE ON PAGE 3 OF THE PAPER BOOK FILED TODAY. IT IS APPARENT FROM A COPY OF THIS NOTICE ISSUED ITA NO.1471/DEL/2016 3 BY THE ITO, WARD 48(2) THAT SUCH NOTICE WAS ISSUED ON 25.8.2011. THIS ALSO BEARS THE STAMP OF THE INCOME-TAX OFFICER, WAR D 48(2), NEW DELHI. AS AGAINST THIS, THE ASSESSEE FILED HIS REVISED RET URN OF INCOME ON 22.3.2011, WHICH IS MANIFEST FROM THE RECORDING MA DE ON PAGE 1 OF THE ASSESSMENT ORDER ITSELF. THE LD. DR HAS NOT BROUGH T OUT ANY OTHER NOTICE ISSUED BY THE AO BEFORE THE FILING OF REVISED RETUR N. THUS, IT IS EVIDENT THAT THE REVISED RETURN DECLARING INTEREST INCOME O F RS.2,38,993/- WAS FILED MUCH PRIOR TO THE ISSUE OF NOTICE U/S 143(2) ON 25.8.2011. WHEN THE REVISED RETURN IS FILED WITHIN THE TIME LIMIT P ERMISSIBLE U/S 139(5) OF THE ACT BEFORE ANY COMMUNICATION OR NOTICE FROM THE AO ABOUT THE INCOME, WHICH FORMS PART OF THE REVISED RETURN, OBV IOUSLY, THERE CAN BE NO QUESTION OF TREATING SUCH VOLUNTARILY OFFERED IN COME AS CONCEALED INCOME ATTRACTING PENALTY U/S 271(1)(C) OF THE ACT. AS, IN THE INSTANT CASE, THE REVISED RETURN DECLARING INTEREST INCOME OF RS.2,38,993/- WAS FILED BEFORE THE ISSUE OF NOTICE U/S 143(2), THERE CANNOT BE ANY CASE FOR IMPOSING OR CONFIRMING ANY PENALTY U/S 271(1)(C) OF THE ACT. I, THEREFORE, ORDER FOR THE DELETION OF PENALTY. ITA NO.1471/DEL/2016 4 4. IN THE RESULT, THE APPEAL IS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 07.06.201 6. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 07 TH JUNE, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.