Sh. Gurpinder Singh Randhawa, Ludhiana V. ITO, W-6(5), Ludhiana

ITA 1570/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1514 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 13-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MODHIT SRIVASTAVA
• Keywords: Income from undisclosed sources; Period of limitation; Time period of passing order

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1570/CHD/2018 / ASSESSMENT YEAR : 2008-09 SHRI GURPINDER SINGH RANDHAWA, 6-B, NEW RAJGURU NAGAR, LUDHIANA NEW ADDRESS: C/O M/S SUDHIR K SEHGAL & ASSOCIATES, 172-A, TAGORE NAGAR, CIVIL LINES, LUDHIANA VS. THE ITO, WARD-6(5), LUDHIANA ./PAN NO: AGHPR3635B / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE ' ! / REVENUE BY : SH. MODHIT SRIVASTAVA, SR. DR # $ % /DATE OF HEARING : 10.06.2019 &'() % / DATE OF PRONOUNCEMENT : 10 .06.2019 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 20.07.2018 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE ISSUE RAISED IN THIS APPEAL RELATES TO THE LEVY OF PENALTY U/S 271 (1)(C) OF THE ACT IN RESPECT OF THE QUANTU M ADDITIONS SUSTAINED BY THE LD. CIT(A). ITA NO. 1570-CHD-2018- SHRI GURPINDER SINGH RANDHAWA, LUDHIANA 2 3. THE APPEAL IS TIME BARRED BY LIMITATION PERIOD O F 39 DAYS. THE ASSESSEE HAS MOVED A SEPARATE APPLICATION PLEADING THEREIN THAT THE ASSESSEE WHO IS NRI, THOUGH, TRIED TO ARRANGE F OR / SENT THE NECESSARY PAPERS FOR FILING THE APPEAL IN TIME TO HIS COUNSEL , HOWEVER, IN THE PROCESS, THE DELAY OF 39 DAYS HAS OCCURRED WHICH W AS BEYOND THE CONTROL OF THE ASSESSEE. CONSIDERING THE ABOVE SUBMISSIONS OF THE ASSESSEE A ND THE SHORTNESS OF THE DELAY IN FILING THE APPEAL, THE DE LAY OF 39 DAYS IS HEREBY CONDONED. 4. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS ACTIVITY OF SAL E AND PURCHASE OF OLD CARS / VEHICLES. THAT CERTAIN AMOUNTS WERE FOUND DE POSITED IN THE ACCOUNT OF THE ASSESSEE. ON BEING ASKED TO EXPLAIN IN THIS ASPECT, THE ASSESSEE EXPLAINED TO THE ASSESSING OFFICER THAT TH E SAID AMOUNT BELONGED TO THE CLIENTS / INTENDING PURCHASERS WHO USED TO HANDOVER CERTAIN AMOUNTS FOR THE PURCHASE OF THE VEHICLES OF THEIR CHOICE THROUGH THE ASSESSEE AND AS AND WHEN SUCH VEHICLES ARE FOUN D AVAILABLE FOR THE SALE. HOWEVER, THE ASSESSING OFFICER DID NOT GET SA TISFIED WITH THE ABOVE EXPLANATION OF THE ASSESSEE AND MADE THE ADDITION O F RS. 8.41 LACS TAKING THE FIGURE OF PEAK CASH CREDITED IN THE ACCO UNT OF THE ASSESSEE. APART FROM THAT, THE ASSESSING OFFICER ESTIMATED 10 % OF THE PROFITS ON THE TOTAL AMOUNT FOUND DEPOSITED IN THE BANK ACCOUN T OF THE ASSESSEE. ITA NO. 1570-CHD-2018- SHRI GURPINDER SINGH RANDHAWA, LUDHIANA 3 5. IN APPEAL, THE LD. CIT(A) AFTER CONSIDERING TH E SUBMISSIONS OF THE ASSESSEE IN RESPECT OF THE INCOME ALREADY DECLA RED AS WELL AS SOURCE OF CERTAIN DEPOSITS, REDUCED THE ADDITION IN RESPEC T OF PEAK CASH CREDIT TO RS. 4.91 LASCS. HE ALSO RESTRICTED THE ADDITION TO RS. 1.14 LACS AS AGAINST 2.30 LACS MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ESTIMATED 10% PROFITS. SEPARATE PENALTY PROCEEDINGS U/S 271 (1)( C) WERE ALSO INITIATED BY THE ASSESSING OFFICER, WHEREUPON, THE ASSESSING OFFICER HAD LEVIED THE IMPUGNED PENALTY IN RESPECT OF THE ADDITIONS S O CONFIRMED BY THE LD. CIT(A). THE ASSESSEE DID NOT PREFER APPEAL AGAINST THE ORDE R OF THE LD. CIT(A) IN RELATION TO THE QUANTUM ADDITIONS, HOWEVE R, IN THE PRESENT APPEAL, THE ASSESSEE HAS CONTESTED THE LEVY OF PEN ALTY U/S 271 (1)(C) OF THE ACT. 6. I HAVE CONSIDERED THE RIVAL CONTENTIONS. IN THIS CASE LD. COUNSEL FOR THE ASSESSEE HAS EXPLAINED THAT THE ASSESSEE W AS ENGAGED IN THE ACTIVITY OF SALE AND PURCHASE OF OLD VEHICLES AND T HAT THE CUSTOMERS USED TO DEPOSIT CERTAIN AMOUNTS WITH THE ASSESSEE SO THA T THE ASSESSEE MAY IMMEDIATELY BOOK / PURCHASE VEHICLES OF THEIR CHOIC E AS AND WHEN THE SAME ARE FOUND AVAILABLE FOR PURCHASE. THE ABOVE C ONTENTION OF THE ASSESSEE HAS NOT BEEN TOTALLY REJECTED BY THE REVEN UE, THAT IS WHY THE ASSESSING OFFICER APART FROM MAKING THE ADDITIONS ON PEAK CASH CREDIT ALSO ESTIMATED THE UNACCOUNTED PROFITS ON THE DEPOS ITS FOUND IN THE BANK ITA NO. 1570-CHD-2018- SHRI GURPINDER SINGH RANDHAWA, LUDHIANA 4 ACCOUNT OF THE ASSESSEE. IF THE ASSESSING OFFICER W AS OF THE VIEW THAT SUCH DEPOSITS WERE OUT OF UNACCOUNTED INCOME OF THE ASSESSEE, THERE WAS NO REASON WITH THE ASSESSING OFFICER TO ESTIMATE PR OFITS ON SUCH DEPOSITS ON THE BASIS OF THE TURNOVER. THE LD. CIT(A) HAS A LSO GIVEN RELIEF TO THE ASSESSEE OBSERVING THAT THE ASSESSEE HIMSELF HAS A LSO DECLARED CERTAIN PROFITS IN RESPECT OF ITS ACTIVITIES OF SALE / PURC HASE OF VEHICLES. UNDER THE CIRCUMSTANCES, IT IS APPARENT THAT THE IMPUGNED ADDITIONS HAVE BEEN MADE BY THE LOWER AUTHORITIES ON ESTIMATION BASIS. HOWEVER, THERE WAS NO RELIABLE OR UN-REBUTTED EVIDENCES ON THE FILE T O PROVE THAT THE ASSESSEE HAD ACTUALLY FURNISHED INACCURATE PARTICU LARS OF INCOME OR CONCEALED PARTICULARS OF HIS INCOME. THOUGH, THE ADDITIONS HAVE BEEN MADE BY THE ASSESSING OFFICER AND FURTHER CONFIRMED BY THE LD. CIT(A) ON THE BASIS OF ESTIMATION / PREPONDERANCE OF POSSI BILITIES OF INTRODUCING SOME UNACCOUNTED INCOME INTO THE BANK ACCOUNT OF THE ASSESSEE, HOWEVER, AFTER APPRECIATING THE FACTS AN D CIRCUMSTANCES OF THE CASE, I DO NOT FIND IT A FIT CASE FOR LEVY OF PENAL TY U/S 271 (1)(C) OF THE ACT AND THE SAME IS ACCORDINGLY ORDERED TO BE DELE TED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 10. 06.2019 .. ITA NO. 1570-CHD-2018- SHRI GURPINDER SINGH RANDHAWA, LUDHIANA 5 '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR