M/s. Shree Valabha Developers, Vadodara V. DCIT Central Circle-2, Vadodara

ITA 1874/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3654 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 04-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAINLD
• Assessee Lawyers: URVASHI SHODHAN LD
• Keywords: Loose papers
• Section: 143(3); 153A

Judgement Text

ITA NOS.1873 & 1874/AHD/2018 M/S. SHREE VALLABHA DEVELOPERS ASSESSMENT YEARS: 2013-14 & 2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE HONBLE SHRI MAHAVIR PRASAD, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NOS.1873 & 1874/AHD/2018 ( / ASSESSMENT YEARS: 2013-14 & 2014-15) M/S. SHREE VA L L ABHA DEVELOPERS NILAMBER AANGAN NEAR SOMA TALAV CHAR RASTA OPP. TIMBER MARKET DABHOI ROAD, BARODA-391 110. / VS. DCIT, CENTRAL CIRCLE - 2, BARODA. ./ ./PAN/GIR NO. ACDFS-2893-Q ( /APPELLANT ) : ( / RESPONDENT ) AS SESSEE BY : MS. URVASHI SHODHAN- LD.AR REVENUE BY : SHRI LALIT P JAIN-LD. DR / DATE OF HEARING : 03/03/2020 / DATE OF PRONOUNCEMENT : 04/03/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEALS BY ASSESSEE FOR ASSESSMENT YEA RS [IN SHORT REFERRED TO AS AY] 2013-14 & 2014-15 CONTEST COMM ON ORDER OF LD. CIT(A), AHMEDABAD QUA CONFIRMATION OF PENALTY U/S.271AAB. THE QUANTUM OF PENALTY FOR AY 2013-14 IS RS.20 LACS WHE REAS THE QUANTUM OF PENALTY FOR AY 2014-15 IS RS.15 LACS. ITA NOS.1873 & 1874/AHD/2018 M/S. SHREE VALLABHA DEVELOPERS ASSESSMENT YEARS: 2013-14 & 2014-15 2 2. THE LD. AUTHORIZED REPRESENTATIVE FOR ASSESSEE ( AR), AT THE OUTSET, PLACED ON RECORD THE DECISION OF CO-ORDINAT E BENCH IN THE CASE OF GROUP ENTITY NAMELY BHARATKUMAR N.PARIKH V/S DCIT, VIDE ITA NOS.2493-94/AHD/2018 COMMON ORDER DATED 23/09/2019. THE LD. AR SUBMITTED THAT PENALTY U/S 271AAB HAS BEEN DELETED BY THE BENCH WHICH WAS IMPOSED ON SIMILAR FACTS AND CIRCUMSTANCES AND THEREFORE, THE ISSUE WOULD STAND COVERED IN ASSESSEES FAVOR. THE LD. DR , WHILE RELYING ON THE ORDER OF LOWER AUTHORITIES, COULD NOT CONTROVER T THE SAID FACTS. 3. IN THE ABOVE BACKGROUND, WE FIND THAT THE ASSESS EE WAS ASSESSED FOR YEAR UNDER CONSIDERATION U/S 143(3) R.W.S. 153A ON 19/02/2016 WHEREIN THE RETURNED INCOME FILED IN RESPONSE TO NO TICE U/S 153A WAS ACCEPTED. DURING SEARCH PROCEEDINGS, THE ASSESSEE A DMITTED DISCLOSURE OF RS.200 LACS FOR AY 2013-14 AND RS.150 LACS FOR A Y 2014-15. THE DISCLOSURE WAS ON ACCOUNT OF INFLATED EXPENSES. THE SAID DISCLOSURE WAS REFLECTED IN THE RETURNS OF INCOME FOR THESE YEARS. CONSEQUENTLY, PENALTY PROCEEDINGS U/S 271AAB, AS APPLICABLE FOR THE PERIO D OF SEARCH, WAS INITIATED AND THE ASSESSEE WAS SADDLED WITH IMPUGNE D PENALTIES VIDE SEPARATE ORDERS BOTH DATED 22/08/2016. THE SAME, UP ON CONFIRMATION BY LD. CIT(A), IS UNDER APPEAL BEFORE US. 4. UPON PERUSAL OF THE CITED ORDER PASSED IN THE CA SE OF GROUP ENTITY, WE FIND THAT PENALTY IMPOSED ON SIMILAR FACTS AND C IRCUMSTANCES HAS BEEN DELETED BY THE CO-ORDINATE BENCH ON THE OPINIO N THAT LOWER AUTHORITIES FAILED TO ESTABLISH THAT THE ASSESSEE H AD DISCLOSED THE INCOME WITH REFERENCE TO ANY SPECIFIC LOOSE PAPERS / ASSET S ETC. THE AO HAD ITA NOS.1873 & 1874/AHD/2018 M/S. SHREE VALLABHA DEVELOPERS ASSESSMENT YEARS: 2013-14 & 2014-15 3 FAILED TO SUBSTANTIATE THAT THE DISCLOSURE MADE U/S 132(4) WAS ON THE BASIS OF ANY INCRIMINATING MATERIAL. THEREFORE, THE REQUIREMENT THAT THERE MUST BE UNDISCLOSED INCOME IN TERMS OF EXPLANATION (C) TO SEC. 271AAB WAS NOT FULFILLED. 5. WE FIND THAT A TOTAL DISCLOSURE OF RS.10.51 CROR ES WAS MADE WITH RESPECT TO VARIOUS ENTITIES INCLUDING ASSESSEE AS W ELL AS BHARATKUMAR PARIKH BESIDES OTHER ENTITIES. IN THE CASE OF ASSES SEE, THE DISCLOSURE WAS ON ACCOUNT OF INFLATED EXPENSES. HOWEVER, NO IN CRIMINATING MATERIAL WAS FOUND DURING SEARCH OPERATIONS AND THE UNDISCLO SED INCOME WAS NOT REPRESENTED BY ANY MONEY, BULLION, JEWELLERY OR OTH ER VALUABLE ARTICLE OR THING OR ANY ENTRY IN THE BOOKS OF ACCOUNTS. NONE O F THE ENTRIES IN THE BOOKS WAS FOUND TO BE FALSE AND THE DISCLOSURE WAS VOLUNTARY. THEREFORE, THE SAME WOULD NOT FALL WITHIN THE TERM UNDISCLOSED INCOME AS DEFINED IN EXPLANATION-C(II) TO SEC.271AAB. HENCE, THE FACTUAL MATRIX DO NOT CONVINCE US TO CONFIRM THE IMPUGNED PENALTIES. BY DELETING THE SAME, WE ALLOW BOTH THE APPEALS. 6. BOTH THE APPEALS STAND ALLOWED IN TERMS OF OUR A BOVE ORDER. ORDER PRONOUNCED IN THE OPEN COURT ON 04/03/2020 SD/- SD/- (MAHAVIR PRASAD) (MANOJ KUMAR AGGARWAL) !' / JUDICIAL MEMBER ' / ACCOUNTANT MEMBER AHMEDABAD ; *' DATED : 04/03/2020 PS,SS ITA NOS.1873 & 1874/AHD/2018 M/S. SHREE VALLABHA DEVELOPERS ASSESSMENT YEARS: 2013-14 & 2014-15 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT CONCERNED 5. ,- .!!/0 , /0 , 1 2 / DR, ITAT, AHMEDABAD 6. . 345 / GUARD FILE / BY ORDER, // TRUE COPY // / ! (DY./ASSTT.REGISTRAR) !'# , 1 2 / ITAT, AHMEDABAD.