ANIL KUMAR, GHAZIABAD V. ITO WARD 2(1)(1), Ward Ghaziabad

ITA 1516/DEL/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1425 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-06-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 02-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA No.1516/Del/2024 Assessment Year 2014-15 Anil Kumar H. No.467, Sector-2C Vashundra Near Amity Ghaziabad Vs. ITO, Ward 2(1)(1) Ghaziabad TAN/PAN: AVRPK3950B (Appellant) (Respondent) Applicant by: None Respondent by: Shri Om Prakash, Sr.DR Date of hearing: 18 06 2024 Date of pronouncement: 27 06 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: T he capt ione d a ppeal has bee n file d by t he assess ee a gainst the orde r of the C o mmi ss ione r o f Inco me Ta x (A ppeals)-Nat io nal Facel ess Ap peal C ent re (N FA C ), Del hi [ ‘C IT (A) ’ in shor t] dated 12. 02.2024 a risi ng fro m t he pe na lt y o rder dated 17.02. 2017 passe d by t he A sses si ng O ff ic er (A O ) under Sect ion 271(1 )(c ) of the Income T ax A ct, 1961 (the Act ) conc er ning A .Y . 201 4-15. 2. A s per t he g rounds of ap peal, the assessee has cha l le nge d the i mpos it i on of pena lt y of R s.4,49, 000/ - under Secti on 271(1 )(c ) on acco unt of a ddi ti ons tow ard s esti ma ted in come arisi ng fro m sha re t ra di ng trans act ions. 3. When th e matter w as cal le d for hearing, none appea re d for the ass essee. T he matt er was acc ordi ng ly p roceede d ex -pa rt e. ITA No.1516/Del/2024 2 4. It is see n fro m th e assess ment order dat ed 13. 12. 2016 t hat w hile mak ing addi tions of R s. 14, 26, 200/- tow ar ds estimate d sh ar e trad in g in come, the assessee has for me d sat isfacti on under Secti on 271(1B) o f the A ct h old in g that the assessee has f urnished ‘i na ccura te partic ulars of income’ tow ards suc h a dditi ons. It is fur th er seen tha t t he A O has how e ver e ven tual l y i mpos ed pe nalt y on t he gr ound t hat asses see has ‘ concea le d the pa rticula rs of inco me ’. A pparent ly, t he bas is and fou nda tion i n i mpositi on of penal t y has be en a lte red by the A O himsel f. The penalty has bee n impose d on a dif ferent pre mis e th an t he origi na l sati sfacti on de ri ved for i mposi tion of pe nal t y. 5. N eedless t o sa y, t he imposi tion o f penal t y is depende nt up on the ‘sati sfacti on’ de ri ved b y th e AO. T he ground for i niti at ion of act io n b y the AO unde r Secti on 271(1 )(c) was a lle gati on of ‘fu rnis hi ng o f ina ccura te particu la rs of i nc ome ’. This grou nd has been su bs ti tuted b y the A O hi mse lf w hile pass ing t he penalt y order da te d 1 7. 02. 20 17. T hus, in the absence of cont in ui ty of th e sat isfacti on of the A O, the pe na lt y orde r pass ed b y the AO is lia ble t o st ruc k dow n on this gr ound alone. 6. For such a view , I use ful l y refer to the decisi on of the H on’b le G uj arat H igh Co urt in t he cas e of New Sor at hi a Engin eer ing C om pany vs. C IT (2 006) 282 ITR 642 (G uj.) and C IT vs. Manu E n gi neering Wo rks (1 980) 122 ITR 306 (G uj.). Simila r view has b ee n taken by the C o -or dinat e Bench of the T ri bunal i n G ian C hand B at i a vs. DC IT, 61 ITD 24 (A ll. ). T herefore, where the AO is no t sure about the natu re of default and has con fi rme d the pe nalt y on an alt oge t he r d iffe rent gro und than for wh ic h sat isfacti on under Sect ion 271(1B ) was for me d, the pena l acti on ITA No.1516/Del/2024 3 under Sect i on 271(1) (c ) of t he Act is no t sus ta inable in l aw. 7. Co nseque ntl y, the pe nal o rde r pa s sed by the A O dated 17. 02.2017 is set aside and t he penal ty i mpose d thereb y is canc el led. 8. In the res ul t, the appeal of t he asses see is allow e d. Order pronounced in the open Court on 27 th June, 2024. - Sd/- [PRADIP KUMAR KEDIA] ACCOUNTANT MEMBER DATED: June, 2024 Prabhat