The ITO, Ward-2(1), Ahmedabad V. Shri Harsh Pravinkumar Jain, Ahmedabad

ITA 1817/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9183 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 10-02-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 24-06-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Bonafide belief
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 271D

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA NO. 1817/AHD/2013 (ASSESSMENT YEAR: 2009-2010) INCOME TAX OFFICER, WARD-2(1), AHMEDABAD, A-WING, ROOM NO.108, 1 ST FLOOR, PRATYAKSH KAR BHAVAN, AMBAWADI, AHMEDABAD - 15 APPELLANT VS. SHRI HARSH PRAVINKUMAR JAIN, PROP. OF M/S. P. K. TRADERS, EKTA COMPLEX, OPP. SETHIA BUILDING, KADIA KUI, RELIEF ROAD, AHMEDABAD 380 001 RESPONDENT PAN: ACKPJ0167D /BY REVENUE : SHRI PRASOON KABRA, SR. D.R. /BY ASSESSEE : ADITI SHETH, A.R. /DATE OF HEARING : 10.02.2017 /DATE OF PRONOUNCEMENT : 15.02.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2009-10 A RISES AGAINST THE CIT(A)-6, AHMEDABADS ORDER DATED 29.04.2013 PASSED IN APPEAL NO. CIT(A)VI/117/R-2/12-13, DELETING PENALTY OF RS.17. 80LACS AS IMPOSED BY ITA NO. 1817/AHD/2013 (ITO VS. SHRI HARSH P. JAIN) A.Y. 2009-10 - 2 - THE ASSESSING OFFICER VIDE ORDER DATED 11.12.2012, IN PROCEEDINGS U/S.271D OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. RELEVANT FACTS ARE IN A NARROW COMPASS. THERE I S NO DISPUTE THAT THE ASSESSEE RECEIVED CASH LOANS FROM HIS TWO PARTNERSH IP FIRMS M/S. CONCEPT TRANSMISSION AND SHANTI TRADING & CO. IN THE RELEVA NT PREVIOUS YEAR. THE ASSESSING OFFICER PENALIZED HIM U/S.271D OF THE ACT BY TREATING THE ABOVE LOAN TRANSACTION TO BE VIOLATING SECTION 269SS OF T HE ACT. THE CIT(A) QUOTES VARIOUS DECISIONS INCLUDING SHREPAK ENTERPRISES VS. DCIT 60 TTJ 199 (AHD) AS WELL AS HONBLE RAJASTHAN HIGH COURTS JUDGMENT IN CIT VS. LOKHPAT FILM EXCHANGE (CINEMA) [2008] 304 ITR 172 THAT TRANSACTI ONS BETWEEN A FIRM AND PARTNER DO NOT ATTRACT THE RIGOR OF 269SS AND 269T OF THE ACT SINCE THE SAME IS UNDER A BONAFIDE BELIEF. THIS LEAVES THE REVENU E AGGRIEVED. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL CONTENTIONS. THE REVENUES VEHEMENT CONTENTION SEEKS TO REVIVE THE I MPUGNED SECTION 271D PENALTY. SHRI KABRA QUOTES HONBLE KERLA HIGH COUR TS DECISION IN GRIHALAKSHMI VISION VS.ADDL.CIT (AIT-2015-133-HC) T HAT THE ASSESSING OFFICER HAD RIGHTLY INVOKED SECTION 271D PENAL ACTI ON. HE HOWEVER FAILS TO DISPUTE ALL THE ABOVE STATED DECISIONS HOLDING THAT SECTION 269SS IS NOT ATTRACTED IN TRANSACTIONS BETWEEN A PARTNERSHIP FIR M AND ITS PARTNER NOT PARTAKING THE CHARACTER OF A LOAN AND DEPOSIT IN GE NERAL LAW AS HELD IN ANOTHER CO-ORDINATE BENCH DECISION IN ITO VS. BHARATKUMAR D AYARAM PATEL ITA ITA NO. 1817/AHD/2013 (ITO VS. SHRI HARSH P. JAIN) A.Y. 2009-10 - 3 - NO.2314/AHD/2010 DECIDED ON 07.10.2010. WE ACCORDI NGLY DRAW SUPPORT THEREFROM AND UPHOLD THE CIT(A)S ORDER UNDER CHALL ENGE DELETING SECTION 271D PENALTY IN QUESTION. 4. THIS REVENUES APPEAL IS DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 15 TH DAY OF FEBRUARY, 2017.] SD/- SD/- ( N. K. BILLAIYA ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 15/02/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0