Shri Narinder Singh, Ropar V. ITO, W-2(2), Ropar

ITA 1475/CHANDI/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0139 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 14-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 13; 22

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , “ S M C ” , C H A N D I G A R H B E F OR E SH R I N . K . SA I N I , V I C E P R E SI D E N T & S H R I S U D H A N S HU SR I V A S T A V A , J U D I C I A L M E M B E R आयकर अपील सं./ ITA No. 1475/C H D / 2 0 1 8 नधा रण वष / Assessment Year : 2 0 1 4 - 1 5 Late Sh. Pawan Garg Through Legal Heir Sh. Akhil Garg, Prop. Pawan Dyeing & Finishing Mills, Circular Road, Moadhopuri, Ludhiana बनाम The ACIT, Circle-2, Ludhiana थायी लेखा सं./PAN NO: ABKPG4904E अपीलाथ /Appellant यथ /Respondent Hearing though video Conferencing नधा रती क ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राज व क ओर से/ Revenue by : Dr. Ranjit Kaur, Sr DR स ु नवाई क तार%ख/Date of Hearing : 05.01.2022 उदघोषणा क तार%ख/Date of Pronouncement : 17.01.2022 आदेश/Order P er S u d h an sh u S ri va s ta va , J u d i c i a l M e mb e r : T hi s a p pe al is pr e f er re d b y t h e as s e s s ee ag a i ns t t he o r de r d a t e d 5. 9. 2 01 8 pa s s ed b y th e L d . Co m mi s s i one r o f In c o me Ta x -1, Lu dhi an a [h e r e i n r e fe rr ed t o as ‘ CIT (A )’ ] fo r a s s es s men t y e ar 2 0 1 4- 1 5, w he re in , vi d e t h e i m pu gn ed or d er , t h e L d. CI T( A ) h as uphe l d t he l e vy o f pe na lt y i mpo s ed u/ s 2 71 (1 ) (c ) o f t he In co me T ax A c t , 1 9 61 (i n s h ort ' th e A c t ') t o t h e t u n e o f R s . 2 , 2 0, 797 /- . ITA No. 1498-Chd-2018- Late Sh. Pawan Garg Thru L/h Sh. Akhil Garg, Ludhiana 2 2. A t t he o ut s e t, t he L d. A ut h or i s e d R e pre s e n t a t i v e (A R) s u b mi t t e d t ha t t he re w a s a d e l a y o f 09 da y s i n f i l i n g t h e c a pt i o ne d a pp e a l. I t h as be e n s ub m i tt e d i n t he D el a y Co nd on at i on A p p l i c a t i o n a s w el l a s i n t h e A ff id a v i t , w hi c h h a s b ee n e nc lo se d a lo n g w it h t he De l a y C on do na t i o n A ppl i ca t i o n, th a t t he a pp ea l c o u l d n ot be f il e d w it hi n t he t i m e a s t he i mpu gne d ord e r a n d t he r e l a te d p a pe rs h ad be en m i s pl a c e d by t h e a s s es s e e. It w a s pra ye d t h at i n th e i n t er e s t o f j u sti c e, t he de l a y ma y ki n d l y b e c on do ne d and th e a pp e a l be ad mi t t e d fo r re g ul a r hea ri ng . 3. 0 P e r c o nt ra , t h e L d. S r . D R op p os e d t he a p p li c a ti on f o r Co n d on a t i o n o f D e l a y. 4. 0 H av in g he ar d b ot h t h e pa r t i e s o n t h e i s s ue o f Con do n a t i o n o f D el a y, i n t h e i n te re s t o f s ub s t a n t i a l j u s t i ce , w e co nd o n e t he de l a y o f 09 da ys , as it is s et t l e d l aw t ha t n o a s s e ss e e w ou l d be b en e fi t t ed by s i mp l y de l ay i n g th e fi l i n g o f t h e ap pe a l . A c c o rd i n g l y , t he d e l a y i s co n d on e d a nd t he a pp e a l i s a d mi t te d. 5. 0 It is s ee n fr o m t h e r ec or d s t ha t as s e s s ee i s a par t n er i n a fi r m e ng a g e d in t he d y e in g a nd f in is h i ng o f t e x t i l e y ar n. The re tu rn o f i nc o me w a s fi l ed d e cl a r i n g an i n co me o f Rs . 8 , 11, 8 00 /- . T he as s e s s ee ’s c as e w a s s e le c t e d f or s c r u t i n y u n de r C A S S a nd du r i ng t h e c ou r s e o f a s s es s men t pr oc e e d in g s , i t w as n ot i c e d t h a t t he a s ses s e e h a d c l ai me d L o ng T er m Ca p i t a l L os s @ 20% a mo u n ti ng t o Rs . 7 , 14, 55 4/ - in r es p e c t o f a p ro p er ty s it ua t ed at 1 0 2 B, M a ha r i sh i B al m i ki Na ga r, V i l l a g e ITA No. 1498-Chd-2018- Late Sh. Pawan Garg Thru L/h Sh. Akhil Garg, Ludhiana 3 H ai bo w a l K h ur d, D is t t . L u d hi an a, w h i c h ha d b ee n gi ft e d by h i m t o h is s on S hr i A k hi l es h G a rg on 2 0 . 7 . 20 13 . T he a s s es s e e wa s a s ke d by t he A s s es s i ng o ffi c e r t o e xp l a in a s t o w h y th i s l os s , wh ic h ha d w ro n g l y b ee n c la i me d, ma y n ot b e d is a l lo w e d a n d, i n re s p on se , the a s s es s e e a cc e p te d t ha t t he r e w as a m i s t a ke d u e to s o m e t yp o gr a p hi c a l e rr or a nd, t h e re fo re , t he a m ou n t w a s a d de d t o t h e i n c o m e o f t he a s s es s e e . S ubs e qu e n t l y , t he i mpu gne d pe na lt y w a s i mp os e d o n t h e sa i d a dd i ti on . 5. 1 T hi s le v y o f p e n a l t y w as u p he l d by th e L d. CI T(A ) a n d n ow t he a s s es s e e i s be for e t hi s T r i b un a l c ha ll e ng i n g th e uph o l d i n g o f l e vy o f pe n a l t y b y ra is i ng t he fo l l ow i n g gro u n ds of a p p ea l :- 1. That the Ld. Commissioner of Income Tax (Appeals)-1, Ludhiana has erred in confirming the levy of penalty u/s 271(1)(c) to the tune of Rs.2,20,797/- as levied by the Assessing Officer, which is against the facts and circumstances of the case. 2. That the CIT(A) has failed to consider the fact that this is a bonafdie typographical mistake having occurred in the office of Tax Consultant of the assessee and, thus, there is no deliberate attempt on the part of the assessee to furnish inaccurate particulars of income. 3. That the Ld. CIT(A) has failed to consider the fact that as per the binding judgment of Hon'ble Punjab & Haryana High Court in the case of Inspecting Assistant Commissioner Vs Manoj Ahuja 150 ITR 696, wherein, it has been held that no litigant shall sufer on account of the mistake of the counsel. 4. That the Appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off. 6. 0. T he L d. A ut h o r i s ed Re pr e s e nt at i v e ( A R) s u b mi t te d t ha t no p e n a lt y w as im pos a bl e a s t he a ss e s s e e h a d o n l y m ad e a w ro n g c la i m a nd n ot a ITA No. 1498-Chd-2018- Late Sh. Pawan Garg Thru L/h Sh. Akhil Garg, Ludhiana 4 fa l s e cl a i m i n a s m uc h a s a l l t he f a c t s w er e be fo r e t h e A s s ess i ng o f fi c e r a t t he t i m e o f a s s es s me n t p ro c e e di n gs a n d fo r t h e re a s o n t ha t a l l th e fi g u r e s w e re d ul y r e fl e c te d i n t he c o mp u ta t i o n o f inc o m e. I t w a s a l s o s ub m i tt e d t h a t t h e m is t a ke ha d o cc ur r ed d u e t o s o m e e r r or a t t he e n d o f t he Ch ar t e r e d A cc o un t a n t ( C. A . ) w ho h ad fi l ed t he ret ur n o f in co me a nd t ha t t h e a s s e s se e s ho ul d n o t b e bu r d e n ed w i t h t h e pe na l t y a s i t w a s a ge n ui ne mi s t a k e. 7. 0 P e r c on t ra , th e L d. S r. D R s u b mi t te d t ha t it w as no t a n i nc or re c t c la i m w h ic h ha d b ee n m a de by t he a s s e ss e e bu t w a s ac t ua l l y a fa l s e c la i m a nd t h at t h e r e w a s a de fi n i t e de l i be ra t e c o l lu s io n b e t w e en t he C. A . a nd th e a s s e s se e , w he re by, t he a s s es s e e ha d a t te m p te d to s e t o ff t he c ap it a l g a i n s e ar ne d d u ri ng t he ye a r a ga i ns t a f al se c la i m o f ca pi t a l l os s a nd, t h e r e fo re , th e pe n al t y h ad r i g ht l y b ee n i m p os ed a nd up h el d. It w as s ub m i tt e d t h at t he as s e s s ee c an n ot es c a p e t he r i g ours o f p en al t y b y s hi ft i n g t h e b la m e t o t he C. A . 8. 0 We ha v e h e a r d t he ri va l s ub m is s i ons a nd ha v e a ls o pe r us e d t h e m at er ia l o n r e c o r d. T h e fa c ts o f t he c a s e a r e n ot in di s p ut e . D ur i n g t he ye a r u n de r co n s id e ra t i o n, t he a s s e s se e ha d gi ft e d on e p l ot t o h is s on w hi ch w a s co ns i de re d as a tr an s fe r a n d s how n u n d e r t h e he a d ‘c ap it a l ga i n’ w h ic h r es u l t e d i n t he a s s es s e e ’s c la i mi n g Lo ng T e r m C ap i t al l os s o f R s . 7 , 1 4, 554 /- i n t h e r e t u r n o f i n c o m e. S i nc e t he as s e s s ee ha d a l s o e ar ne d L on g Te r m Ca pi t a l G ai n a mo u nt i ng t o Rs . 9, 2 4, 8 39/ - d u ri ng th e ye a r un de r c o ns i d e ra ti on , a s a re s ul t o f t he i m p ugn ed L on g T e r m ITA No. 1498-Chd-2018- Late Sh. Pawan Garg Thru L/h Sh. Akhil Garg, Ludhiana 5 Ca pi t a l Lo s s , t he Lo ng T er m C a p i t al G ai n c a m e to be r ed uc e d b y t he a mou nt o f c a pi ta l l os s s o w r ongl y c la i me d. Th e mi st a k e w as not i ce d by t he A s s e s s i ng o f fi c e r d u r i n g t h e co u rs e o f a s s es s m en t p r oc e e d i n gs a nd on b e i n g c on f r on t e d o n t he i s s ue, th e a s s e s s ee s ur re n d e re d t h e L on g T er m C a pi t a l L os s . We ha ve a l so go n e t h r o ug h t h e co m p ut a ti on o f i nc o me f i l e d b y th e as s e s s ee a n d w e s e e th at th i s am o un t o f c a pi t a l l os s ha s be e n d ul y me nt i on e d in t he c o m p ut a ti on o f i nc o me . Th e r e fo re , a pp a r e n t l y , w e fi n d t h a t t h er e is n o c o nc e a l me nt o f a ny ma t er ia l fa c t by t he a s s es s e e. A t b e s t, it ca n b e s a id t h a t t h e c la im m a d e by t h e a s se s s e e w i th re s p e c t t o t he Lo ng T e r m Ca pi ta l L os s w a s a n inc or re c t c l ai m or a w ron g c l ai m bu t i t w as not a f al s e cl a i m by a ny m e as ur e in a s mu c h as t he re w a s o nl y a mi s t a k e i n th e l eg al s en s e t h at t he g i ft ma de b y t he a s s es s e e t o t he s on w a s co ns i de r e d as a t ra ns fe r i n t he c o mpu ta t io n o f i nc o me a n d t h e re s ul t a n t fi g u re w a s sho w n a s a c a p it a l l os s . It is al s o a fa c t on r e c o rd t ha t t h e as s e s s ee ha d ac c e p t e d t h e sa m e a t t h e ti me o f a s s es s men t pr oc e e d i ngs . 8. 1 T he r e f o re , o n t h e fa c t s o f t he p r e s ent c as e , w e a r e o f t h e c ons i de re d o pi n i o n t h a t i t is no t a c as e w he r e t he p a rt i c u la rs o f i nc o m e i n r e l a t i on t o w h ic h t h e p e n a l t y ha s b e e n le vi ed w er e e it he r i n co rre c t or w er e c o nc e a le d. Th e a m o un t o f c a p it a l l o s s ha s du ly be en d i s cl os e d i n t he c o mp u t a t i o n o f in co m e a n d, t he re fo re , it ca nn o t s a i d to be a ca s e o f t he a ss e s s e e at t e m p t in g t o m ak e a f al s e c l a i m. T he H o n ' b le A pe x C ou r t i n t he c as e o f CI T V s. Rel i an ce P e t r o P ro duc t s l t d r e p or t e d i n (2 0 1 0) ITA No. 1498-Chd-2018- Late Sh. Pawan Garg Thru L/h Sh. Akhil Garg, Ludhiana 6 32 2 I T R 15 8 (S C) ha s c l e a rl y h e l d t h a t i f a l l th e par ti c u l ar s o f i nc o m e a re du ly d is c l o s ed , t he m e r e d i s al l ow a n ce o f c l a i m o r n on - ac c e pt a nc e o f a cl a i m w o u ld n ot a t t r a c t le v y o f p e na lt y u/ s 271 (1) ( c ) o f t he A c t . 8. 2 S i mi l a r l y, t h e H on ' bl e A p e x C ou r t i n t h e ca s e of P r i c e W at e rh o us e Co o p e rs P vt Lt d V s . CIT re p or te d i n ( 20 12 ) 2 5 ta x m an n . c o m (S C ) has he l d t h a t a b on a fi d e mi s t a k e o n t he p a rt o f t he as se s s e e w oul d n o t a t t ra c t l ev y o f pe na l ty w h e re a l l t h e pa rt i c u l a rs o f i n c o m e a re dul y di s c l o s ed a nd w her e t he re i s j us t a fa il ur e on t h e pa rt o f t he a s s es se e t o a c t a s pe r t he p r ov is i o ns o f t h e A ct w hi le c o mpu t i ng t h e i nco me . T h e re fo r e, gu id e d by t h e j ud ge m e n ts o f t h e H on ' bl e A pe x C ou r t , a s a for e me n t i o n e d, w e ho l d t h a t n o pe na l t y w a s le ga l ly i m p o s a bl e o n t h e fa c t s o f t h e pr e s en t c as e . A cc o r d in gl y, w e se t a s i d e t he or de r o f t h e L d. CI T ( A ) a nd di re c t t he A s s e s s in g o ffi c e r t o d e le t e t he i m p ug n ed a dd i t io n. In th e fi n a l r es u lt , t h e a p pe a l o f t he a s se s s e e s t an ds al l ow e d . O rde r pr on ou nc e d o n 17. 0 1 . 2 0 22 . Sd/- Sd/- ( N.K. SAINI) (SUDHANSHU SRIVASTAVA) Vice President Judicial Member Dated : 17.01.2022 “आर.के .” आदेशक त,ल-पअ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु /त/ CIT 4. आयकरआय ु /त (अपील)/ The CIT(A) 5. -वभागीय त न2ध, आयकरअपील%यआ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File ITA No. 1498-Chd-2018- Late Sh. Pawan Garg Thru L/h Sh. Akhil Garg, Ludhiana 7 आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar