Amit Sachdeva, New Delhi V. ACIT, New Delhi

ITA 1521/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4922 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 14-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: SONIA; V R SACHDEV CAS
• Keywords: Salary income
• Section: 10(10D)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.1521/DEL/2017 ASSESSMENT YEAR : 2009-10 AMIT SACHDEVA, C-1/14, SAFDARJUNG DEVELOPMENT AREA, NEW DELHI. PAN: ANYPS9928C VS. ACIT, CIRCLE-22(1), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : MS SONIA & SHRI V.R. SACHDEV, CAS DEPARTMENT BY : SHRI T. VASANTHAN, SR. DR DATE OF HEARING : 31.08.2017 DATE OF PRONOUNCEMENT : 01.09.2017 ORDER THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF TH E ORDER PASSED BY THE CIT(A) ON 23.12.2016 CONFIRMING THE PENALTY OF RS.3,48,940/- IMPOSED BY THE ASSESSING OFFICER U/S 271(1)(C) OF T HE ACT. ITA NO.1521/DEL/2017 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN DECLARING SALARY INCOME FROM M/S SACHDEVA FABRIC WO RLD PVT. LTD. AND INCOME FROM OTHER SOURCES IN THE FORM OF INTEREST . THE ASSESSEE ALSO RECEIVED A SUM OF RS.10 LAC FROM M/S ICICI PRUDENTI AL LIFE INSURANCE POLICY, WHICH WAS CLAIMED AS EXEMPT U/S 10(10D) OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS REVEAL ED THAT KEYMAN INSURANCE POLICY ON THE LIFE OF THE ASSESSEE WAS TA KEN, WHICH IN THE OPINION OF THE AO WAS NOT ELIGIBLE FOR EXEMPTION. IN THE ULTIMATE ANALYSIS, THE ASSESSING OFFICER MADE DISALLOWANCE O F RS.10 LAC ON WHICH PENALTY CAME TO BE IMPOSED. THE LD. CIT(A) UPHELD THE IMPOSITION OF PENALTY, AGAINST WHICH THE ASSESSEE IS IN APPEAL BE FORE THE TRIBUNAL. 3. AFTER HEARING BOTH THE SIDES AND PERUSING THE RE LEVANT MATERIAL ON RECORD, IT IS OBSERVED FROM THE COMPUTATION OF INCO ME FILED BY THE ASSESSEE ALONG WITH THE RETURN OF INCOME, A COPY OF WHICH IS AVAILABLE AT PAGE 1 OF THE PAPER BOOK, THAT THE A NOTE WAS GIVEN TO THE EFFECT THAT: MATURITY OF LIFE INSURANCE FROM ICICI PRUDENTIAL L IFE INSURANCE RS.10 LAC IS EXEMPT. FROM THE ABOVE, IT IS CLEAR THAT T HE ASSESSEE LODGED A ITA NO.1521/DEL/2017 3 BONA FIDE CLAIM ABOUT THE EXEMPTION OF RS.10 LAC U/S 10(10D) BY PROPERLY DISCLOSING THE FACTS IN THE COMPUTATION OF INCOME ITSELF. MERELY BECAUSE THE ASSESSING OFFICER DID NOT ALLOW THE EXE MPTION AND THE ASSESSEE DID NOT AGITATE THE MATTER FURTHER, CANNO T LEAD TO CONCEALMENT OF INCOME WARRANTING IMPOSITION OF PENALTY U/S 271( 1)(C) OF THE ACT. THE HON'BLE SUPREME COURT IN THE CASE CIT VS. RELIANCE PETRO PRODUCTS PVT. LTD. (2010) 322 ITR 158 (SC) HAS HELD THAT SIMPLY FOR THE REASON THAT THE ASSESSING OFFICER DID NOT FIND THE CLAIM O F THE ASSESSEE TO BE SUSTAINABLE IN LAW UP TO A CERTAIN EXTENT, CANNOT B E A CASE FOR PENALTY U/S. 271(1)(C), MORE SO, WHEN THE PARTICULARS FURNISHE D BY THE ASSESSEE WERE NOT INACCURATE. IN VIEW OF THE FOREGOING DISCUSSIO N, I AM SATISFIED THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN SUSTAINING THE PENALTY IMPOSED BY THE AO U/S 271(1)(C) IN RESPECT OF DISALLOWANCE OF EXEMPTION. THE IMPUGNED ORDER IS SET ASIDE AND THE PENALTY IS DIRE CTED TO BE DELETED. ITA NO.1521/DEL/2017 4 4. IN THE RESULT, THE APPEAL IS ALLOWED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 0 1 ST SEPTEMBER, 2017. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 01 ST SEPTEMBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.