GOUTHAM CHAND MEHTA (HUF), CHENNAI V. ITO NON CORPORATE WARD 1 (2), CHENNAI

ITA 1723/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9249 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 21-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: LAKSHMICHAND NAHATA
• Keywords: Reasonable cause; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , ! ' # , % #& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1723/CHNY/2018 ) *) / ASSESSMENT YEAR : 2014-15 GOUTHAMCHAND MEHTA (HUF), C/O L. NAHATA & CO., 120, NYNIAPPA NAICKEN STREET, PARKTOWN, CHENNAI - 600 003. PAN : AADHG 0413 J V. THE INCOME TAX OFFICER, NON-CORPORATE WARD 1(2), CHENNAI - 600 034. (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : SHRI LAKSHMICHAND NAHATA, FCA ./,- 0 1 / RESPONDENT BY : MS. S. VIJAYAPRABHA, JCIT 2 0 3% / DATE OF HEARING : 14.03.2019 45* 0 3% / DATE OF PRONOUNCEMENT : 01.04.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -2, CHENNA I, DATED 20.02.2018 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2. THERE IS A DELAY OF 14 DAYS IN FILING THE APPEAL BY THE ASSESSEE. AFTER HEARING BOTH THE PARTIES, THIS TRI BUNAL FINDS THAT THERE IS A REASONABLE CAUSE IN NOT FILING THE APPEA L WITHIN THE 2 I.T.A. NO.1723/CHNY/18 PRESCRIBED TIME. THEREFORE, THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED. 3. COMING TO THE MERIT OF THE APPEAL, THE ASSESSING OFFICER LEVIED PENALTY ON THE DONATION SAID TO BE MADE BY T HE ASSESSEE TO SCHOOL OF HUMAN GENETICS AND POPULATION HEALTH TO T HE EXTENT OF 4,38,750/-. THE ASSESSEE CLAIMED DEDUCTION UNDER S ECTION 35CA OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). DURING THE COURSE OF SEARCH OPERATION IN THE PREMISES OF THE SCHOOL OF H UMAN GENETICS AND POPULATION HEALTH, A SWORN STATEMENT APPEARS TO HAVE BEEN RECORDED AND IT WAS FOUND THAT THE RECEIPT OF DONAT ION BY THE ASSESSEE WAS NOT GENUINE. THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDING WITHDREW THE CLAIM MADE UNDER SECTION 35CA OF THE ACT AND OFFERED FOR TAXATION THE ENTIRE AMOUNT OF 4,38,750/-. 4. THE ASSESSING OFFICER HAS ALSO DISALLOWED A SUM OF 3,51,000/- WHICH WAS DEBITED IN THE PROFIT & LOSS A CCOUNT TOWARDS DONATION. THE QUESTION ARISES FOR CONSIDERATION IS WHETHER THE ASSESSEE HAS CONCEALED ANY PART OF INCOME OR FURNIS HED INACCURATE PARTICULARS OF INCOME? THE FACT THAT THE ENTIRE IN COME WAS DISCLOSED BY THE ASSESSEE IS NOT IN DISPUTE. THE A SSESSEE DEBITED 3 I.T.A. NO.1723/CHNY/18 3,51,000/- TOWARDS DONATION AND ALSO MADE A CLAIM W ITH REGARD TO THE AMOUNT GIVEN TO SCHOOL OF HUMAN GENETICS AND PO PULATION HEALTH TO THE EXTENT OF 4,38,750/-. WHEN THE ASSESSEE HAS DISCLOSED ENTIRE PARTICULARS OF INCOME BEFORE THE A SSESSING OFFICER AND MADE A CLAIM UNDER SECTION 35CA OF THE ACT AND DURING THE COURSE OF HEARING, THE ASSESSEE OFFERED THE INCOME AND WITHDREW THE CLAIM, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT IT CANNOT BE SAID THAT THERE IS A CONCEALMENT OF INCOME OR FURNI SHING INACCURATE PARTICULARS OF INCOME. 5. THE STATEMENT SAID TO BE RECORDED FROM THE TRUST EES OF SCHOOL OF HUMAN GENETICS AND POPULATION HEALTH WAS NOT FURNISHED TO THE ASSESSEE. MOREOVER, AS HELD BY APEX COURT IN CIT VS. RELIANCE PETROPRODUCTS (P) LTD. (2010) 322 ITR 158, MERE MAKING A CLAIM CANNOT BE CONSTRUED TO BE CONCEALING OF INCOM E OR FURNISHING INACCURATE PARTICULARS OF INCOME. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THIS IS NOT A FIT CASE FOR LEVY OF PENALTY. ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES ARE SET ASIDE AND PENALTY LEVIED BY THE ASSESSING OFFICER IS DELETED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 4 I.T.A. NO.1723/CHNY/18 ORDER PRONOUNCED IN THE COURT ON 1 ST APRIL, 2019 AT CHENNAI. SD/- SD/- ( ! ' # ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 1 ST APRIL, 2019. KRI. 0 .389 :9*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 ;3 () /CIT(A)-2, CHENNAI-34 4. PRINCIPAL CIT, CHENNAI-1, CHENNAI 5. 9< .3 /DR 6. ) = /GF.