M/s Sam Land Developers and Promoters Pvt. Ltd., Chandigarh V. DCIT, Chandigarh

ITA 1606/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0032 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 27-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BEFORE AND S HRI S.S.GODARA M/S SAM, LAND DEVELOPERS AND PROMOTERS PVT. LTD. SCO-112-113, 1 ST FLOOR, SECETOR- 8C, CHANDIGARH T AN /PAN : AAJCS 4750 M (APP ELL ANT) / APPELLANT BY: RESPONDENT BY: DATE OF HEARING: DATE OF PRONOUNCEMENT: PER S.S. GODARA, JUDICIAL THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011 COMMISSIONER OF INCOME TAX (APPEALS) 25.10.2018 PASSED IN CASE NO.17/CIT(A) PROCEEDINGS U/S 271AAA HEARD BOTH THE PAR 2. THE ASSESSEES THE LOWER AUTHORITIES ACTION IMPOSING U/S 271AAA PE NALTY OF RS.10,70,460/- @ 10% OF ITS ALLEGED UNDISCLOSED INCOME AMOUNTING T O RS.1,07,04,616/- . THE INSTANT LIS PERTAINS TO THE DEPARTMENTS , B IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH B BENCH, CHANDIGARH BEFORE SHRI N.K. SAINI, VICE-PRESIDENT HRI S.S.GODARA , JUDICIALMEMBER ITA NO. 1606/CHD/2018 ASSESSMENT YEAR: 2011 - 12 SAM, LAND DEVELOPERS AND PROMOTERS PVT. LTD. FLOOR, 8C, CHANDIGARH V. DCIT, CENTRAL CIRCLE - 1, CHANDIGARH AAJCS 4750 M (RESPONDENT) APPELLANT BY: SHRI SUNIL KUMAR BHASIN, CA RESPONDENT BY: SHRI G.S.PHANI KISHARE, CIT - DR DATE OF 22 0 5 201 9 DATE OF 24 0 5 201 9 / O R D E R S.S. GODARA, JUDICIAL MEMBER: THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011 - 12 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS) - 3, GURGAONS ORDER DATED 25.10.2018 PASSED IN CASE NO.17/CIT(A) -3/GGN/2017- 18, INVOLVING U/S 271AAA OF THE INCOME TAX ACT, 1961; IN SHORT HEARD BOTH THE PAR TIES. CASE FILE PERUSED. THE ASSESSEES SOLE GRIEVANCE CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION IMPOSING U/S 271AAA PE NALTY OF @ 10% OF ITS ALLEGED UNDISCLOSED INCOME AMOUNTING T O . THE INSTANT LIS PERTAINS TO THE DEPARTMENTS IN THE INCOME TAX APPELLATE TRIBUNAL DR 12 ARISES AGAINST THE 3, GURGAONS ORDER DATED 18, INVOLVING OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION IMPOSING U/S 271AAA PE NALTY OF @ 10% OF ITS ALLEGED UNDISCLOSED INCOME AMOUNTING T O . THE INSTANT LIS PERTAINS TO THE DEPARTMENTS SEARCH ITA NO.1606/CHANDI/2018 PAGE 2 OF 3 ACTION IN M/S SAM JAIN GROUP OF CASES DATED 18.02.2 016. THE ASSESSEES DIRECTOR APPEARS TO HAVE MADE TOTAL SURRENDER OF RS .3 CRORES INCLUDING RS.50 LAC AT ITS BEHEST U/S. 132(4) OF THE ACT. THE ASSESSING OFFICER THEREAFTER FRAMED THE QUANTUM ASSESSMENT IN ISSUE A DDING NET PROFIT @ 14% COMING TO RS.57,04,616/- ( BEING THE DIFFERENCE BETWEEN THE IMPUGNED NET PROFIT THAT ALREADY DECLARED ). THE SAID ADDITION STOOD CONFIRMED IN THE CIT(A)S QUANTUM LOWER APPELLATE O RDER. IT IS IN THIS BACKDROP OF FACTS THAT THE ASSESSING OFFICER HAS LE VIED THE IMPUGNED PENALTY @10% OF ASSESSEES UNDISCLOSED INCOME OF RS .1,07,04,616/- COMING TO RS.1,07,461/-. 3. LEARNED COUNSEL REPRESENTING ASSESSEE INVITES OUR A TTENTION TO ITS DETAILED PAPER BOOK FORMING PART OF THE CASE FI LE. HE TAKES US TO THIS TRIBUNALS QUANTUM ORDER IN ITA NO.703/CHD/2016 DECIDED ON 21.11.2017 RESTORING THE ISSUE BACK TO THE ASSESSIN G OFFICER DIRECTING HIM THAT THE COST OF LAND IN QUESTION BE EXCLUDED I N COMPUTATION OF THE ASSESSEES TAXABLE INCOME @ 8% NET PROFIT. THE ASSE SSEES CASE ACCORDINGLY IS THAT THE IMPUGNED PENALTY HAS NO LEG TO STAND AS OF NOW IN VIEW OF THE SAID QUANTUM DEVELOPMENTS. THE REVEN UE FAILS TO DISPUTE THAT THE LEARNED CO-ORDINATE BENCHS QUANTUM ORDER HAS SET ASIDE THE ISSUE BACK TO THE ASSESSING OFFICER FOR RE-COMPUTAT ION IN SPECIFIC TERMS. WE THEREFORE DRAW SUPPORT FROM THE TRIBUNALS SAID QUANTUM DIRECTIONS AND RESTORE THE ISSUE OF CORRECTNESS OF IMPUGNED PE NALTY BACK TO THE ASSESSING OFFICER TO BE DECIDED AFRESH. 4. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL P URPOSE IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 24/05/2019. SD/ - SD/ - [ N.K.SAINI ] [ S.S.GODARA ] VICE PRESIDENT JUDICIAL MEMBER ! DATED:24/05/2019 ITA NO.1606/CHANDI/2018 PAGE 3 OF 3 *DKP ! ' / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S SAM LAND DEVELOPMENT AND PROMOTERS P VT. LTD., SCO 112-113, 1 ST FLOOR, SECTOR-8C CHANDIGARH 2. /RESPONDENT-DCIT, C.C-1, CHANDIGARH 3. &'&() * * + ! / CONCERNED CIT CHANDIGARH 4. * * +- ! / CIT (A) CHANDIGARH 5. /0 11(), * () , ! / DR, ITAT, CHANDIGARH 6. 4 56 / GUARD FILE. BY ORDER/ *78 , /TRUE COPY/ 9 &: * () , !