Aravind Kumar Agarwal, Kolkata V. A.C.I.T.(OSD),WARD-1(1), Siliguri

ITA 1603/KOL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8736 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 03-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHRUBAJYOTI ROY
• Keywords: Corroborative evidences; Capital Gains; Bogus
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A (VIRTUAL COURT HEARING), BENCH KOLKATA BEFORE SHRI S. S. GODARA, JM & DR. A.L. SAINI, AM ./I.T.A NO.1603/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2015-16) ARAVIND KUMAR AGARWAL C/O SUBASH AGARWAL & ASSOCIATES, ADVOCATES SIDDHA GIBSON, 1, GIBSON LANE, SUITE 213, 2 ND FLOOR, KOLKATA 700069. VS. ACIT(OSD), WARD-1(1), SILIGURI ./ ./PAN/GIR NO.: AACCH6877K (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SUBASH AGARWAL, ADVOCATE RESPONDENT BY : SHRI DHRUBAJYOTI ROY, JCIT / DATE OF HEARING : 08/07/2020 /DATE OF PRONOUNCEMENT : 22/07/2020 / O R D E R PER SHRI S. S. GODARA: THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2015-16 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (A), SILIGURI DATED 29.05.2019 PASSED IN CASE NO.10/CIT(A)/SLG/2018-19 INVOLVING PROCEEDINGS U/S 271(1)(C) OF THE INCOME TAX ACT, 1961[IN SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CANVASSED IN THE INSTANT LIS SEEKS TO REVERSE BOTH THE LEARNED LOWER AUTHORITIES ACTION IMPOSING SECTION 271(1)(C) PENALTY OF RS.1,85,764/- PERTAINING TO ALLEGED BOGUS LONG-TERM CAPITAL GAIN OF I.T.A NO.1603/KOL/2019 ARAVIND KUMAR AGARWAL ASSESSMENT YEAR: 2015-16 PAGE | 2 RS.6,38,778/- ADDING DURING THE COURSE OF ASSESSMENT FRAMED ON 22.09.2017. THE REVENUES CASE AS PER BOTH THE LOWER AUTHORITIES DETAILED DISCUSSION IS THE ASSESSEE HAS BEEN RIGHTLY PENALIZED U/S 271(1)(C) OF THE ACT SINCE HE HIMSELF HAD SURRENDERED HIS LONG-TERM CAPITAL GAINS CLAIM TO BE EXEMPT U/S 10(38) AS BOGUS IN THE ABOVE-STATED ASSESSMENT. IT THEREFORE EMPHASIZES THAT THE ASSESSEES SAID VOLUNTARY SURRENDER MAKES HIM LIABLE FOR CONSEQUENTIAL PENALTY AS WELL. WE SEE NO REASON TO EXPRESS OUR CONCURRENCE WITH THE REVENUES STAND. WE MAKE IT CLEAR THAT HONBLE APEX COURTS LANDMARK DECISION IN RELIANCE PETROPRODUCTS CASE 322 ITR 158 (SC) HAS SETTLED THE LAW THAT QUANTUM AND PENALTY PROCEEDINGS STAND ON DIFFERENT FOOTING AND EACH AND EVERY DISALLOWANCE/ADDITION IN THE FORMER DOES NOT IPSO FACTO ATTRACT THE LATTER PENAL PROVISION. WE KEEP IN MIND THE VERY DISTINCTION AND NOTICE THAT THE ASSESSEE HAS FILED ALL THE RELEVANT SUPPORTING EVIDENCE IN SUPPORT OF GENUINENESS OF THIS ABOVE-STATED LONG-TERM CAPITAL GAINS DERIVED DURING THE COURSE OF SCRUTINY. THAT BEING THE CASE, WE FIND THAT THIS TRIBUNALS COORDINATE BENCHS DECISION IN SMT. AMITA TULSIYAN ITA NO.1513/HYD/2018 DATED 10.05.2019 HOLDS THAT SUCH AN INSTANCE NEITHER AMOUNTS TO CONCEALMENT NOR FURNISHING OF INACCURATE PARTICULARS OF INCOME U/S 271 OF THE ACT. WE THEREFORE DELETE THE IMPUGNED PENALTY. 3. THIS ASSESSEES APPEAL IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 22.07.2020. SD/- ( A. L. SAINI ) SD/- (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER /KOLKATA; / DATE: 22/07/2020 RS I.T.A NO.1603/KOL/2019 ARAVIND KUMAR AGARWAL ASSESSMENT YEAR: 2015-16 PAGE | 3 / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT- ARAVIND KUMAR AGARWAL 2. THE RESPONDENT- ACIT(OSD), WARD-1(1), SILIGURI 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.