DCIT, CENTRAL, CIRCLE-2(3), Nagpur V. SMT. VINITA MAHESH GUPTA, Nagpur

ITA 183/NAG/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93397 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 02-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C W AWGULKAR
• Section: 54F; 54; 263; 139

Judgement Text

1 ITA NO. 183/NAG/2013 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 183/NAG/2013 ASSESSMENT YEAR :2002-03 DY. COMMISSIONER OF INCOME-TAX, VINITA MAHESH GUPTA, CENTRAL CIRCLE-2(3), NAGPUR. V/S. GUPTA HOUSE, CIVIL LINES, NAGPUR. PAN ABVPG2767 L APPELLANT. RESPONDENT. APPELLANT BY : SHRI C.W. AWGULKAR RESPONDENT BY : S HRI RAJESH LOYA. DATE OF HEARING - 22-05-2015 DATE OF PRONOUNCEMENT 27 TH MAY,2015 O R D E R PER SHRI MUKUL K. SHRAWAT, J.M. THIS IS AN APPEAL FILED BY THE REVENUE ARISING FROM THE ORDER OF LEARNED CIT(APPEALS)-I, NAGPUR DATED 08-02-2013 AND THE GRO UNDS RAISED ARE REPRODUCED BELOW :: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(APPEALS) ERRED IN DELETING THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT AMOUNTING TO ` .20,00,000/-. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(APPEALS) HAS FAILED TO APPRECIATE THE FACT T HAT THE ASSESSEE HAS NOT 2 ITA NO. 183/NAG/2013 OFFERED ANY EXPLANATION REGARDING THE DIFFERENCE I N THE RETURN OF INCOME FILED U/S 139 & 153A, AMOUNTING TO ` .33,910/- 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(APPEALS) HAS FAILED TO APPRECIATE THE FACT TH AT THE ASSESSEE DOES NOT HAVE ANY EVIDENCE REGARDING THE CLAIM OF AGRICULTU RAL INCOME OF ` .26,900/-. THE LEARNED CIT(A) HAS ALSO FAILED TO APPRECIATE T HE FACT THE ASSESSEE DOES NOT HAVE ANY EVIDENCE REGARDING THE CLAIM OF AGRIC ULTURAL INCOME ORIGINALLY CLAIMED AT ` .82,908/- OR THE REVISED CLAIM OF ` .50,000/- WHICH AMOUNTS TO CONCEALMENT OF INCOME. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(APPEALS) HAS FAILED TO APPRECIATE THE FACT EV EN THOUGH THE ASSESSEE WAS NOT ENTITLED FOR DEDUCTION U/S 54 OF THE ACT, IT HAS WRONGLY CLAIMED DEDUCTION U/S 54 WHICH AMOUNTS TO CONCEALMENT OF INCOME. 2. AT THE OUTSET, WE HAVE BEEN INFORMED THAT THE IM PUGNED PENALTY HAS BEEN LEVIED BY AN ORDER WHICH WAS PASSED ON 07-07-2008 B Y THE ACIT, CIRCLE-2(3), NAGPUR IN CONSEQUENCE UPON AN ORDER PASSED UNDER SE CTION 263 OF THE I.T. ACT DATED 10-01-2008 BY CIT(CENTRAL), NAGPUR. AS PER TH E IMPUGNED CONSEQUENTIAL ORDER, A DEDUCTION UNDER SECTION 54F OF ` .50,36,980/- WAS DISALLOWED AND THE CONCEALMENT PENALTY WAS INVOKED. 2.1 NOW WE HAVE BEEN INFORMED THAT THE SAID ORDER P ASSED UNDER SECTION 263 DATED 10-01-2008 STOOD QUASHED IN A BUNCH OF APPEAL S DECIDED BY ITAT, NAGPUR BENCH, NAGPUR VIDE ORDER DATED 15-12-2012 HEARING IT(SS) A NO. 55 & 57/NAG/2008 (A.Y. 2002-03 AND 2004-05) TITLED AS SM T. VINITA MAHESH GUPTA V/S. CIT. IN THIS ORDER VIDE PARA 21, THE RESPECTED COOR DINATE BENCH HAS HELD AS UNDER : BOTH THE PARTIES AGREED THAT THE ISSUE INVOLVED IN THIS APPEAL IS SIMILAR TO THE ISSUE INVOLVED IN IT(SS)A NO. 110/N AGPUR/2008 AND IT WAS STATED THAT WHATEVER VIEW THIS TRIBUNAL MAY TAKE I N IT(SS)A NO. 110, THE SAME VIEW MAY BE TAKEN IN THIS CASE. IN THAT CASE, WE HAVE SINCE ALREADY QUASHED THE ORDER PASSED U/S 263, RESPECTFULLY FO LLOWING OUR FINDING IN THAT 3 ITA NO. 183/NAG/2013 CASE AS GIVEN IN THE PRECEDING PAGE, WE QUASH THE ORDER PASSED U/S 263 IN THIS CASE ALSO AND ACCORDINGLY ALLOW THIS APPEAL O F THE ASSESSEE. 2.3 ONCE THE MAIN ORDER WHICH HAS TRIGGERED THE IMPUGNED PENALTY PROCEEDINGS STOOD QUASHED BY THE ITAT, NAGPUR, THER EFORE, THE CONSEQUENTIAL ORDERS OF THE REVENUE DEPARTMENT NOW STOOD AUTOMATI CALLY CANCELLED AS ALSO NON EST IN THE EYES OF LAW. HENCE THE PENALTY PERTAININ G TO ` .50,36,984/- (DISALLOWANCE U/S 54) STOOD CANCELLED. WE ORDER A CCORDINGLY. 3. THE REMAINING TWO AMOUNTS OF ` .33,910/- AND ` .26,900/- PERTAINED TO ESTIMATION OF AGRICULTURAL INCOME. THE AGRICULTURAL INCOME AS DISCLOSED BY THE ASSESSEE WAS NOT ACCEPTED BY THE ASSESSING OFFICER SO AN ESTIMATION WAS MADE AND THE BALANCE INCOME WAS TAXED. SINCE THE BASIS O F LEVY OF PENALTY WAS MERELY ON ESTIMATION THROUGH WHICH THE AGRICULTURAL INCOME AS DECLARED BY THE ASSESSEE GOT REDUCED, THEREFORE, WE HEREBY HOLD THAT THERE W AS NO LOGICAL AND LAWFUL BASIS TO IMPOSE PENALTY ON SUCH ESTIMATED ADDITION. WE, T HEREFORE, HOLD THAT THE LEARNED CIT(APPEALS) WAS RIGHT IN DELETING THE PENA LTY. 4. IN THE RESULT, WE FIND NO FORCE IN THE GROUNDS O F THE REVENUE. HENCE THE SAME ARE HEREBY DISMISSED. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. SD/- SD/- (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER. NAGPUR, DATED: 27 TH MAY, 2015. 4 ITA NO. 183/NAG/2013 COPY OF ORDER FORWARDED TO : 1. THE ASSESSEE. 2. REVENUE. 3. THE CIT(A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. T RUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, N AGPUR WAKODE.