Anil Kumar, Saharanpur V. ITO, Saharanpur

ITA 1633/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7360 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-08-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 19-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN SENIOR
• Assessee Lawyers: K P GARG

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 1633/DEL/2014 1633/DEL/2014 1633/DEL/2014 1633/DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 SHRI ANIL KUMAR, SHRI ANIL KUMAR, SHRI ANIL KUMAR, SHRI ANIL KUMAR, S/O SHRI JANARDAN DASS, S/O SHRI JANARDAN DASS, S/O SHRI JANARDAN DASS, S/O SHRI JANARDAN DASS, VILLAGE USAND VILLAGE USAND VILLAGE USAND VILLAGE USAND, ,, , P.O. BEHAT, P.O. BEHAT, P.O. BEHAT, P.O. BEHAT, DISTRICT SAHARANPUR (UP). DISTRICT SAHARANPUR (UP). DISTRICT SAHARANPUR (UP). DISTRICT SAHARANPUR (UP). PAN : ABBPK0169J. PAN : ABBPK0169J. PAN : ABBPK0169J. PAN : ABBPK0169J. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -1, 1,1, 1, SAHARANPUR. SAHARANPUR. SAHARANPUR. SAHARANPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.P. GARG, CA. RESPONDENT BY : SHRI S.K. JAIN, SENIOR DR. DATE OF HEARING : 11.08.2016 11.08.2016 11.08.2016 11.08.2016 DATE OF PRONOUNCEMENT : 19.08.2016 19.08.2016 19.08.2016 19.08.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2009-10 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), MUZAF FARNAGAR DATED 29 TH NOVEMBER, 2013. 2. THE ASSESSEE HAS CHALLENGED THE PENALTY OF `1,79 ,600/- LEVIED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE INCOME-T AX ACT, 1961. 3. THE FACTS OF THE CASE ARE THAT AS AGAINST THE RE TURNED INCOME OF `7,00,859/-, THE ASSESSING OFFICER COMPLETED THE AS SESSMENT AT `41,91,281/-. LEARNED CIT(A) DELETED ALL THE ADDIT IONS EXCEPT THE ADDITION MADE BY THE ASSESSING OFFICER TO THE NET P ROFIT BY ESTIMATING THE PROFIT AT 8%. LEARNED CIT(A) ALSO REDUCED THE ESTIMATION OF PROFIT BY THE ASSESSING OFFICER AND AS AGAINST THE ADDITIO N OF MORE THAN `10 LAKHS MADE BY THE ASSESSING OFFICER TO THE NET PROF IT, THE CIT(A) ITA-1633/DEL/2014 2 SUSTAINED THE ADDITION TO THE EXTENT OF `4,94,782/- . THE ASSESSING OFFICER LEVIED PENALTY U/S 271(1)(C) IN RESPECT OF THE ESTIMATED ADDITION TO THE NET PROFIT SUSTAINED BY THE CIT(A). 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D HAVE PERUSED THE MATERIAL PLACED BEFORE US. WE FIND THA T THE ASSESSEE DERIVED INCOME FROM CIVIL CONTRACT WORK FROM CPWD. THE ASSESSING OFFICER DID NOT ACCEPT THE TRADING RESULT BUT DETER MINED THE INCOME OF THE ASSESSEE AT 8% OF THE NET PROFIT. LEARNED CIT( A) REDUCED THE ESTIMATE. IN OUR OPINION, MERELY BY ESTIMATION OF HIGHER NET PROFIT, IT CANNOT BE SAID THAT THE ASSESSEE HAS CONCEALED THE PARTICULARS OF INCOME. THE MAIN REASON FOR THE REJECTION OF BOOKS OF ACCOUNT AND APPLICATION OF NET PROFIT RATE WAS THAT THE ASSESSE E HAS INCURRED VARIOUS EXPENDITURE IN CASH WHICH WERE NOT PROPERLY VERIFIABLE. THE SAME MAY BE GOOD ENOUGH FOR REJECTION OF BOOK RESUL TS AND ESTIMATION OF PROFIT BUT CERTAINLY NOT SUFFICIENT FOR THE PURP OSE OF LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. WE, THEREFORE, CANCEL TH E PENALTY LEVIED U/S 271(1)(C). 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 19.08.2016 . SD/- SD/- (SUCHITRA KAMBLE (SUCHITRA KAMBLE (SUCHITRA KAMBLE (SUCHITRA KAMBLE ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : SHRI ANIL KUMAR, S/O SHRI JANARD AN DASS, SHRI ANIL KUMAR, S/O SHRI JANARDAN DASS, SHRI ANIL KUMAR, S/O SHRI JANARDAN DASS, SHRI ANIL KUMAR, S/O SHRI JANARDAN DASS, VILLAGE USAND, P.O. BEHAT, VILLAGE USAND, P.O. BEHAT, VILLAGE USAND, P.O. BEHAT, VILLAGE USAND, P.O. BEHAT, DIST DIST DIST DISTRICT SAHARANPUR (UP). RICT SAHARANPUR (UP). RICT SAHARANPUR (UP). RICT SAHARANPUR (UP). 2. RESPONDENT : INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD- -- -1, SAHARANPUR. 1, SAHARANPUR. 1, SAHARANPUR. 1, SAHARANPUR. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR