Sh. Madan Lal Chaudhry, Kangra V. ITO, Dharamashala

ITA 15/CHANDI/2011

• Counselvise Citation: 1521514 RSA 2011
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-09-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 04-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAI SHREE SHARMA
• Assessee Lawyers: SUNIL SEHGAL
• Keywords: Salary income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE MS SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO. 15/CHD/2011 ASSESSMENT YEAR: 2002-03 SHRI MADAN LAL CHAUDHRY, V ITO, S/O LATE JAGAT RAM CHAUDHRY, DHARAMSHALA. VILLAGE BARAI, P.O. SUNEHAR, KANGRA. PAN: AEGPC-1937A (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI SUNIL SEHGAL RESPONDENT BY: SMT. JAISHREE SHARMA DATE OF HEARING : 26.09.2011 DATE OF PRONOUNCEMENT : 27.09.2011 ORDER PER MEHAR SINGH, AM THIS APPEAL IS AGAINST THE ORDER DATED 11.10.2010 P ASSED BY THE CIT(A) U/S 250(6) OF THE INCOME-TAX ACT,1961 . THE APPEAL IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) AGAINST CONFIRMING THE PENALTY OF RS.1,94,226/- LEVIED BY T HE AO U/S 271(1)(C) OF THE ACT. 2. IN THE COURSE OF PRESENT APPELLATE PROCEEDINGS, THE LD. AR CONTENDED THAT ALL THE PARTICULARS ESSENTIAL FOR TH E COMPUTATION OF INCOME WERE DULY DISCLOSED IN THE RETURN OF INCO ME. LD. AR ANNEXED THE PHOTO COPY OF FORM NO.3 REPRESENTING RE TURN OF INCOME AND ANNEXURES THERETO DEMONSTRATING DISCLOSU RE OF ALL THE RELEVANT PARTICULARS IN THE MATTER. THE FINDIN GS OF THE LD. AO 2 ARE REPRODUCED HEREUNDER : OPPORTUNITY NOTICE U/S 129 OF THE I.T.ACT, 1961 WE RE ISSUED BY THE UNDERSIGNED ON 01.07.09 TO SHOW CAUSE WHY PENALTY U/S 271(1)(C) OF I.T.ACT, 1961, BE NOT IMPOSED FOR CONCEALING PARTICULARS OF HIS INCOME FO R ASSESSMENT YEAR 2002-03. BUT NONE APPEARED ON THIS DATE NOR ANY WRITTEN APPLICATION SEEKING ADJOURNMEN T WAS RECEIVED IN THIS OFFICE ON THE FIXED DATE. THE N ANOTHER OPPORTUNITY NOTICE UNDER SECTION 290 OF INC OME- TAX ACT,1961 WAS ISSUED ON 21.08.2009 REQUESTING TO APPEAR BEFORE THE UNDERSIGNED ON 28.08.09. ON THIS DATE THE ASSESSEE DID NOT APPEAR OR ANY WRITTEN APPLICATION/EXPLANATION RECEIVED IN THIS OFFICE. UN DER CIRCUMSTANCES, IT BECOMES AMPLY CLEAR THAT THE ASSE SSEE HAS NOTHING TO PLEAD AGAINST THE ADDITION MADE BY T HE AO FOR CONCEALING PARTICULARS OF INCOME AS NOTED AB OVE. AFTER PERUSING THE VARIOUS ORDERS OF ASSESSING AND APPELLATE AUTHORITIES, I AM OF THE CONSIDERED OPINI ON AND FULLY SATISFIED MYSELF THAT ASSESSEE HAS CONCEALED PARTICULARS OF HIS ASSESSABLE INCOME TO THE TUNE OF RS.7,21,543/-. SO PENALTY OF RS.1,94,226/- UNDER SE CTION 271(1)(C) IS IMPOSED UPON THE ASSESSEE FOR CONCEALI NG PARTICULARS OF HIS INCOME. 3. LD. CIT(A) UPHELD THE FINDINGS OF THE AO. 4. THE ASSESSEE FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2002-03 ON 31.03.2003 UNDER THE STATUS NON-RE SIDENT- AFTER DECLARING AN INCOME OF RS.6,55,523/- ON ACCOU NT OF SALARY INCOME AND CLAIMED EXEMPTION AS PER EXPLANATION 6( 1)(C) AND FILED THE RETURN AS NIL INCOME AND CLAIMED REFUND OF RS.1,74,075/-. THE ASSESSMENT WAS FRAMED U/S 143(3 ) OF THE ACT AND THE EXEMPTION WAS NOT ALLOWED TO THE ASSESSEE WHILE COMPUTING THE TAXABLE INCOME. THE FIRST APPELLATE AUTHORITY ADJUDICATED THE ISSUE IN FAVOUR OF THE ASSESSEE VID E ORDER DATED 3 20.09.2004 AS IS EVIDENT FROM PARA 5 OF THE ORDER O F THE FIRST APPELLATE AUTHORITY. 5. THE CRUX OF THE MATTER IS THAT THE ASSESSEE HAS DISCLOSED ALL THE ESSENTIAL PARTICULARS OF HIS INCOME AND STATUS AND NOTHING HAS BEEN CONCEALED WITHIN THE MEANING OF THE PROVIS IONS OF SECTION 271(1)(C) OF THE ACT. THEREFORE, THE CASE DOES NOT FALL UNDER THE PROVISIONS OF CONCEALMENT AS CONTAINED U/ S 271(1)(C) OF THE ACT. THE PENALTY CANNOT BE LEVIED ON VENIAL GROUNDS. THEREFORE, THE PENALTY IS DELETED. 6. RESULTANTLY, THE APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH SEPTEMBER,2011. SD/ SD/- (SUSHMA CHOWLA) (MEHAR SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27 TH SEPT.,2011 POONAM COPY TO: 1. THE APPELLANT, 2. THE RESPONDENT, 3. THE CIT(A), 4. THE CIT 5. THE D.R, INCOME-TAX DEPARTMENT, CHANDIGARH ASSISTANT REGISTRAR, ITAT, CHANDIGARH