Shri Ibrahimbhai K.Langada, Bhavnagar V. The Income tax Officer,Ward-1(1), Bhavnagar

ITA 1686/AHD/2011

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0391 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-09-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 22-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L CHANDEL
• Assessee Lawyers: PARIMAL SINGH PARMAR
• Keywords: Gift; Wrong claim

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER. ITA. 1686/AHD/2011 (ASSESSMENT YEAR:2005-06) SHRI IBRAHIMBHAI K. LANGADA, PROP. OF R. K. STEEL TRADERS, SAVARKUNDLA ROAD, NR. RANNADE MARBLE, MAHUVA, DIST: BHAVNAGAR APPELLANT VS. THE ITO, WARD 1(1), BHAVNAGAR RESPONDENT PAN: ACAPL6536G / BY ASSESSEE : SHRI PARIMAL SINGH PARMAR, A.R . / BY REVENUE : SHRI S. L. CHANDEL, SR. D.R. / DATE OF HEARING : 09.09.2016 / DATE OF PRONOUNCEMENT : 30.09.2016 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2005-06 ARISES FROM CIT(A)-XX, AHMEDABADS ORDER DATED 24.03.2011 IN CASE ITA NO.2806/AHD/2013 (M/S. M. D. SHAH & CO. VS. ITO ) A.Y. 2007-08 - 2 - NO. CIT(A) XX/2/10-11 AFFIRMING PENALTY OF RS.2,65 ,090/- IMPOSED BY THE ASSESSING OFFICER VIDE ORDER DATED 2 3.02.2010, IN PROCEEDINGS U/S.271(1)(C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. RELEVANT FACTS OF THE CASE ARE IN A NARROW COMPA SS. BOTH THE LOWER AUTHORITIES HAVE IMPOSED THE IMPUGNED PEN ALTY BY HOLDING THE ASSESSEE TO HAVE FURNISHED INACCURATE P ARTICULARS OF INCOME AND ITS CONCEALMENT TO THE TUNE OF RS.8,0 7,786/-. THIS AMOUNT IN FACT REPRESENTS A CORRESPONDING ADDI TION MADE IN THE COURSE OF ASSESSMENT AFTER REJECTION OF ASSE SSEES CLAIM TO HAVE RECEIVED CASH GIFTS FROM HIS FATHER-IN-LAW SHRI ISMAILBHAI. THIS DONOR APPEARS TO HAVE PLACED ON R ECORD LAND REVENUE DOCUMENTS PROVING TO HAVE OWNED 75 BIGHAS L AND. ALL THIS FOLLOWED HIS CONFIRMATION IN THE COURSE OF SCR UTINY AS WELL. THE MODE OF GIFTS IN QUESTION IS PEACEMILL INSTANCE S OF RS.85000/- PER YEAR FOR THE LAST 11 YEARS. THE ASS ESSING OFFICER MADE THE IMPUGNED ADDITION AS UPHELD BY THE CIT(A) IN HIS ORDER DATED 29.01.2009. THIS TRIBUNAL DISMISSE D ASSESSEES APPEAL ITA NO.1404/AHD/2009 ON 27.04.2011 IN DEFAUL T FOR NON PROSECUTION. THE SAME IS YET TO BE RESTORED. 3. WE HAVE HEARD BOTH THE PARTIES REITERATING THEIR RESPECTIVE STAND AGAINST AND IN SUPPORT OF THE IMPUGNED PENAL TY. IT HAS COME ON RECORD THAT THE ASSESSEE HAS BEEN ABLE TO P RODUCE HIS FATHER-IN-LAW/DONER ALONGWITH ALL EVIDENCE OF SOURC E OF INCOME AND DOCUMENTARY PROOF (SUPRA). MEANING THEREBY THA T IT IS NOT A CASE OF MAKING ALTOGETHER A FALSE CLAIM. A COORD INATE BENCH OF THE TRIBUNAL IN ITA NO.3032/AHD/2010 CHHAGANBHAI K PATEL ITA NO.2806/AHD/2013 (M/S. M. D. SHAH & CO. VS. ITO ) A.Y. 2007-08 - 3 - VS. ITO DECIDED ON 05.09.2014 DELETES IDENTICAL PEN ALTY IN CASE OF A SIMILAR GIFT CLAIMED BACK BY THE VERY KIND OF EVIDENCE. WE FOLLOW THE SAME IN THE INSTANT APPEAL AS WELL TO DE LETE THE IMPUGNED PENALTY OF RS.2,65,090/-. 4. THIS ASSESSEES APPEAL IS ALLOWED. [ PRONOUNCED IN THE OPEN COURT ON THIS THE 30 TH DAY OF SEPTEMBER, 2016 .] SD/- SD/- (MANISH BORAD) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 30/09/2016 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )* + ,--. . /0 / DR, ITAT, AHMEDABAD 1 + 23 4 5 / GUARD FILE. BY ORDER / . // . /0