ACIT, New Delhi V. Sh. Sudish Bhati, Delhi

ITA 1692/DEL/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7486 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 25-09-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 22-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R R KUMAR
• Section: 44AD; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 1692/DEL/2013 ASSESSMENT YEAR: 2007-08 ACIT, CIRCLE 36(1), NEW DELHI. VS. SUDISH BHATI, 205, CHHABRA COMPLEX, 8, VEER SAVARKAR BLOCK, SHAKARPUR, DELHI. AFKPB1592D (APPELLANT) (RESPONDENT) APPELLANT BY : SH. B.R.R. KUMAR, SR. DR RESPONDENT BY : NONE O R D E R PER I.C. SUDHIR, J.M. THE REVENUE HAS QUESTIONED THE FIRST APPELLATE ORD ER ON THE GROUND THAT THE LD. CIT(A) HAS ERRED IN DELETING THE PENAL TY OF RS. 4,22,549/- IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT. 2. HEARD THE LD. DR AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 3. IN THE PRESENT CASE IN THE ASSESSMENT ORDER FRAM ED U/S 144 OF THE ACT THE AO BY APPLYING 8% OF NET PROFIT RATE ON THE GROSS RECEIPT HAS ESTIMATED THE PROFIT AND MADE ADDITION OF RS. 12,55 ,346/-. PENALTY U/S 271(1)(C) OF THE ACT IN RESPECT OF THESE ADDITIONS HAS BEEN IMPOSED BY THE AO WITH THIS FINDING THAT THE ASSESSEE HAD NOT FILE D ANY APPEAL AGAINST THIS ADDITION. HENCE IT AMOUNTED TO VOLUNTARY CONCEDING CONCEALMENT OF INCOME ON HIS PART. THE CONTENTION OF THE ASSESSEE DURING THE PENALTY PROCEEDINGS REMAINED THAT PROPER OPPORTUNITY WAS NO T ALLOWED TO HIM DURING THE COURSE OF ASSESSMENT PROCEEDINGS TO FILE THE REQUISITE DETAILS OF ITA NO. 1692/D/2013 SUDISH BHATI 2 THE EXPENSES, ASSESSEES ACCOUNTS WERE DULY AUDITED AND SINCE HIS TURNOVER WAS MORE THAN RS. 40 LAKHS PROVISIONS OF S ECTION 44AD WERE NOT APPLICABLE TO ESTIMATE THE INCOME BY APPLYING NP RA TE AT 8%. IT WAS CONTENDED THAT DIFFERENCE IN THE ASSESSED INCOME AN D THE RETURNED INCOME ON ACCOUNT OF ESTIMATION OF INCOME BY APPLYING A NE T PROFIT RATE DOES NOT AMOUNT TO CONCEALMENT OF INCOME. CONSIDERING THESE MATERIAL ASPECTS OF THE CASE, WE ARE OF THE VIEW THAT THE LD. CIT(A) HA S RIGHTLY HELD THAT PENALTY IN QUESTION WAS NOT LEVIABLE ON THE ADDITION MADE B Y THE AO BY ESTIMATING THE INCOME OF THE ASSESSEE BY APPLYING A NET PROFIT RATE. THE SAME IS UPHELD. THE GROUND IS ACCORDINGLY, REJECTED. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19/12/2014 SD/- SD/- (T.S. KAPOOR) ACCOUNTANT MEMBER (I.C. SUDHIR) JUDICIAL MEMBER DATED: 19/12/2014 *KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER ASSISTANT REGISTRAR