Sanjay Ghosh, Kolkata V. ITO, Ward-40(3)/ Newly 45(3), Kolkata, Kolkata

ITA 1808/KOL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 9852 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 04-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOWDHURY
• Assessee Lawyers: SANJAY GHOSH LD
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (D), KOLKATA [BEFORE SHRI P.M. JAGTAP, AM & SHRI S.S. GODARA, JM] I.T.A. NO. 1808/KOL/2017 ASSESSMENT YEAR: 2007-08 SANJAY GHOSH.................................................................................APPELLANT 69/A, PEARY MOHON SUR GARDEN LANE, KOLKATA 700 085. [PAN: ACXPG 0989 R] ITO, WARD 40(3)/NEWLY 45(3), KOLKATA....................RESPONDENT KOLKATA 700 001. APPEARANCES BY: SHRI SANJAY GHOSH, LD. AR APPEARING ON BEHALF OF THE ASSESSEE. SHRI ROBIN CHOWDHURY, CIT (DR) APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 19, 2018 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 26, 2018 ORDER PER P.M. JAGTAP, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(EXEMPTION), KOLKATA DATED 10.04.2017 WHEREBY HE CONFIRMED THE PENALTY OF RS. 7,140/- IMPOSED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUAL WHO FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ORIGINALLY ON 28.07.2007 DECLARING A TOTAL INCOME OF RS. 60,000/-. IN THE SAID RETURN, REFUND OF RS. 16,320/- WAS CLAIMED BY THE ASSESSEE ON ACCOUNT OF TAX DEDUCTED AT SOURCE BY M/S. MAHARASTRA KRISHNA VALLEY DEVELOPMENT CORPORATION, PUNE FROM THE PAYMENT OF INTEREST OF RS. 1 LACS MADE TO THE ASSESSEE FOR A PERIOD OF 10 YEARS FROM 01.07.1996 TO 30.06.2006. SINCE THE SAID INTEREST INCOME WAS NOT DECLARED BY THE ASSESSEE IN HIS RETURN OF INCOME, A NOTICE U/S 148 WAS ISSUED BY THE AO ON 18.06.2010 IN RESPONSE TO WHICH THE RETURN OF INCOME WAS FILED 2 I.T.A. NO. 1808/KOL/2017 ASSESSMENT YEAR: 2007-08 SANJAY GHOSH BY THE ASSESSEE ON 02.07.2010 DECLARING A TOTAL INCOME OF RS. 1,60,000/- INCLUDING THE INTEREST INCOME OF RS. 1,00,000/- RECEIVED FROM M/S. MAHARASTRA KRISHNA VALLEY DEVELOPMENT CORPORATION, PUNE IN THE ASSESSMENT COMPLETED U/S 147/144 VIDE AN ORDER DATED 21.11.2011, THE INCOME AS DECLARED BY THE ASSESSEE IN THE RETURN FILED IN RESPONSE TO NOTICE U/S 148 WAS ACCEPTED BY THE AO. HE HOWEVER INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) IN RESPECT OF THE INTEREST INCOME OF RS. 1,00,000/- RECEIVED BY THE ASSESSEE FROM M/S. MAHARASTRA KRISHNA VALLEY DEVELOPMENT CORPORATION, PUNE AND SINCE THERE WAS NO EXPLANATION OFFERED BY THE ASSESSEE IN RESPONSE TO THE SHOW CAUSE NOTICE ISSUED DURING THE COURSE OF THE SAID PROCEEDINGS, PENALTY OF RS. 7,140/- WAS IMPOSED BY THE AO U/S 271(1)(C) BEING 100% OF TAX SOUGHT TO BE EVADED BY THE ASSESSEE ON THE INTEREST INCOME OF RS. 1,00,000/- BY TREATING THE SAME AS THE CONCEALED INCOME OF THE ASSESSEE. ON APPEAL, THE LD. CIT(A) CONFIRMED THE SAID PENALTY. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT EVEN THOUGH THE INTEREST AMOUNT OF RS. 1,00,000/- RECEIVED BY THE ASSESSEE FROM M/S. MAHARASTRA KRISHNA VALLEY DEVELOPMENT CORPORATION, PUNE WAS RELATED TO THE PERIOD OF 10 YEARS, THE ASSESSEE OFFERED THE SAME ENTIRELY ON RECEIPT BASIS IN THE RETURN OF INCOME FILED FOR THE YEAR UNDER CONSIDERATION IN RESPONSE TO NOTICE ISSUED U/S 148. EVEN THE AO HIMSELF ACCEPTED THE SAID RETURN AND COMPLETED THE ASSESSMENT IN CASE OF THE ASSESSEE ON THE TOTAL INCOME OF RS. 1,60,000/- AS DECLARED IN THE SAID RETURN. IT IS THUS CLEAR THAT 3 I.T.A. NO. 1808/KOL/2017 ASSESSMENT YEAR: 2007-08 SANJAY GHOSH IMMEDIATELY AFTER THE ASSESSEE WAS MADE AWARE BY THE AO THAT THE ENTIRE INTEREST INCOME OF RS. 1,00,000/- WAS CHARGEABLE TO TAX IN THE YEAR UNDER CONSIDERATION, THE ASSESSEE ACCEPTED THE SAME AND DECLARED THE SAID AMOUNT AS HIS INCOME IN THE RETURN OF INCOME FILED IN RESPONSE TO NOTICE U/S 148 ISSUED BY THE AO. KEEPING IN VIEW THIS BONA FIDE CONDUCT OF THE ASSESSEE WHICH IS NOT DOUBTED EVEN BY THE AO, WE ARE OF THE VIEW THAT THE ASSESSEE CANNOT BE SAID TO BE GUILTY OF CONCEALING PARTICULARS OF HIS INCOME SO AS TO ATTRACT THE PENAL PROVISION OF SECTION 271(1)(C). IN THAT VIEW OF THE MATTER, WE CANCEL THE PENALTY IMPOSED BY THE AO U/S 271(1)(C) AND CONFIRMED BY THE LD. CIT(A) AND ALLOW THIS APPEAL OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH SEPTEMBER, 2018. SD/- SD/- (S.S. GODARA) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 26/09/2018 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. SANJAY GHOSH, 69A, PEARY MOHON SUR GARDEN LANE, KOLKATA 700085. 2. ITO, WD-40(3)/NEWLY 45(3), KOLKATA 700 001. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, KOLKATA