Shri Raman Krishnamurari Sood., Belgaum V. Asst. Commissioner of Income Tax, Circle-2, Belgaum., Belgaum

ITA 174/PAN/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1497 (ITAT-PANAJI)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 29-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMRITI BHARDWAJ LD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI N.S. SAINI, HON'BLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 174/PNJ/2015 : (A.Y 2010 - 11) RAMAN KRISHNAMURARI SOOD A.R. ENGINEERS, 2143/9, M.M. EXTENSION, BELGAUM PAN : AMEPS5007R (APPELLANT) VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 2, BELGAUM (RESPONDENT) ASSESSEE BY : KIRAN MOHAN GAWALE, ASST. OF SHRI PRAMOD VAIDYA, ADV. REVENUE BY : SMT. SMRITI BHARDWAJ, LD. DR DATE OF HEARING : 05/08/2015 DATE OF PRONOUNCEMENT : 05/08/2015 O R D E R PER GEORGE MATHAN : 1. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), BELAGAVI IN ITA NO. 346/BGM/2013 - 14 DT. 2.3.2015 FOR THE A.Y 2010 - 11. SHRI KIRAN MOHAN GAWALE, THE ASSISTANT OF SHRI PRAMOD VAIDYA, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND SMT. SMRITI BHARDWAJ, LD. DR REPRESENTED ON BEHALF OF THE REVENUE. 2. IT WAS SUBMITTED BY THE LD. AR THAT THE ASSESSEE IS AN INDIVIDUAL WHO IS DOING CONTRACT BUSINESS. ADDITIONS HAD BEEN MADE IN RESPECT OF THE CASH 2 ITA NO. 174/PNJ/2015 (A.Y : 2010 - 11) DEPOSITS IN TWO BANK ACCOUNTS WHICH WERE TREATED AS UNDISCLOSED BANK ACCOUNTS. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD IN THE COURSE OF THE ASSESSMENT VIDE LETTER DT. 31.12.2012 GIVEN THE DETA ILS OF THE BANK ACCOUNTS TO THE AO AND HAD MENTIONED THAT THE SAID TWO BANK ACCOUNTS HAD BEEN SHOWN AS CAPITAL INTRODUCED AS ON 31.3.2010. IT WAS THE SUBMISSION THAT THE AO HAD LEVIED PENALTY U/S 271(1)(C) OF THE ACT AND THE LD. CIT(A) HAD CONFIRMED THE S AME. IT WAS THE SUBMISSION THAT THE AO HAS NOT SPECIFIED AS TO WHETHER THERE IS A CHARGE OF CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS OF INCOME. THE LD. AR DREW OUR ATTENTION TO PAGE 1 OF THE PAPER BOOK WHICH WAS COPY OF SHOW CAUSE NO TICE ISSUED U/S 274 R.W.S 271(1)(C) OF THE ACT. IT WAS THE SUBMISSION THAT AS NO SPECIFIC CHARGE HAS BEEN RAISED, THE PENALTY LEVIED WAS LIABLE TO BE CANCELLED. 3. IN REPLY, THE LD. DR VEHEMENTLY SUPPORTED THE ORDER OF THE AO AND THE LD. CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERUSAL OF THE SHOW CAUSE NOTICE ISSUED BY THE AO CLEARLY SHOWS THAT THE AO HAS NOT SPECIFIED THE CHARGES ON WHICH HE HAS PROPOSED TO LEVY THE PENALTY U/S 271(1)(C) OF THE ACT. IT IS NECESSARY FOR THE AO TO STA TE WHETHER THE PENALTY IS BEING LEVIED FOR CONCEALMENT OF INCOME OR FOR FURNISHING OF INACCURATE PARTICULARS OF INCOME. THERE IS NO CLEAR FINDING IN THE SHOW CAUSE NOTICE OR IN THE PENALTY ORDER. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE DECISION S OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF NEW SORATHIA ENGG. CO. REPORTED IN 282 ITR 642 AND HON'BLE BOMBAY HIGH COURT IN THE CASE OF SMT. KAUSHALYA REPORTED IN 216 ITR 660 AS ALSO ON THE GROUND THAT THERE IS NO SPECIFIC CHARGE AND THE SHOW CAUSE NOTICE IS VAGUE, THE PENALTY AS LEVIED BY THE AO, AND AS CONFIRMED BY THE LD. CIT(A) STANDS CANCELLED. 3 ITA NO. 174/PNJ/2015 (A.Y : 2010 - 11) 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 05/08/2015. S D / - (N.S. SAINI) ACCOUNTANT MEMBER S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 05/08/ 201 5 *SSL* COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 4 ITA NO. 174/PNJ/2015 (A.Y : 2010 - 11) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 05/08/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 06/08/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 06/08/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 06/08/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 06/08/2015 SR.PS 6. DATE OF PRONOUNCEMENT 05/08/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 06/08/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER