The ITO, Ward-1(2), Surat V. Foremost Finvest Pvt.Ltd., Surat

ITA 1888/AHD/2011

• Counselvise Citation: 188820514 RSA 2011
• Duration Of Justice: 4 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 29-07-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 28-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADIPKUMAR MAJUMDAR
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: S H RI G. D. AGRAWAL , VICE PRESIDENT AND SHR I S.S. GODARA , JUDICIAL MEMBER INCOME TAX OFFICER, WARD - 1(2), ROOM NO. 112, 1 ST FLOOR, AYAKAR BHAVAN, MAJU RAGATE, SURAT (APPELLANT) VS M/S. FOREMOST FINVEST PV T. LTD. 701, TRIVIDH CHAMBERS, RING ROAD, SURAT PAN: AACF6758R (RESPONDENT) REVEN UE BY : S H RI PRADIPKUMAR MAJUMDAR , SR. D . R. ASSESSEE BY: WRITTEN SUBMISSION DATE OF HEARING : 29 - 07 - 2 015 DATE OF PRONOUNCEMENT : 07 - 08 - 2 015 / O RDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THI S REVENUE S APPEAL FOR A.Y. 2005 - 06 , AR ISES FROM ORDER OF THE CIT(A) - I, SURAT DATED 20 - 05 - 2011 IN APPEAL NO. CAS - I/57 /10 - 11, IN I T A NO . 1888/ A HD/20 11 A SSESSMENT YEAR 200 5 - 06 I.T.A NO. 1888 /AHD/20 11 A.Y. 2005 - 06 PAGE NO ITO VS. M/S. FOREMOST FINVEST PVT. LTD 2 PROCEEDINGS UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE REVENUE S SOLE SUBSTANTIVE GROUND SEEKS TO RESTORE THE IMPUGNED PENALTY OF RS. 5,07,18/ - LEVIED U/S. 271(1)(C) OF THE ACT ARISING FROM ADDITION OF UNEXPLAINED INVESTMENT OF RS . 14,48,623/ - U/S. 69B OF THE ACT. 3. THE ASSESSEE HAS NOT COME PRESENT DESPITE SERVICE OF NOTIC E. IT HAS FILED WRITTEN SUBMISSION ON 16 - 04 - 2015 PLACING ON RECORD TRIBUNAL S ORDER DATED 18 - 06 - 2010 IN ITA NO. 2826/AHD/2010 IN QUANTUM PROCEEDINGS DELETING THE ADDITION ON MERITS ITSELF. IT IS ACCORDINGLY PROCEEDINGS EX - PARTE. 4. WE HAVE HEARD THE R EVENUE AND PERUSED THE CASE FILE. THE ASSESSING OFF ICER ADDED THE IMPUGNED SUM OF R S. 14,48,623/ - IN ASSESSEE S CASE ON THE GROUND THAT IT HAD PURCHASED L A ND AND BUILDING FOR RS. 22 LACS ONLY WHEREAS THE STAMP AUTHORITY H AS VALUED THE SAME TO BE OF RS . 36,48,623/ - . THE ASSESSING OFFICER ACCORDINGLY MADE THE IMPUGNED ADDITION IN QUANTUM PROCEEDINGS AMOUNTING TO RS. 14,48,623/ - U/S. 69B. AND ALSO INI TIATED PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE ACT. THE CIT(A) UPHELD T HE ADDITION IN HIS ORDER DATED 11 - 06 - 2008. IN THE MEANTIME, THE ASSESSING OFFICER IMPOSED THE IMPUGNED PENALTY ON 23 - 02 - 2010. THE ASSESSEE PREFERRED APPEAL BEFORE THE TRIBUNAL (SUPRA) IN QUANTUM AND BEFORE CIT(A) IN PENALTY PROCEEDINGS. THE FORMER ONE STOOD ACCEPTED AS INDICATE D HEREINABOVE. THE LATTER ONE HAS FOLLOWED SU IT IN VIEW OF QUANTUM ORDER. WE OBSERVE IN THESE CIRCUMSTANCES T HAT THE IMPUGNED PENALTY IS NOT LIABLE TO BE SUSTAINED ONCE THE QUANTUM ADDITION I.T.A NO. 1888 /AHD/20 11 A.Y. 2005 - 06 PAGE NO ITO VS. M/S. FOREMOST FINVEST PVT. LTD 3 ITSELF STANDS DELETED. THE REVENUE S GROUND STAND S REJECTED ACCORDINGLY . THIS REVENUE S APPEAL IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 07 - 08 - 2015 SD/ - SD/ - ( G.D. AGRAWAL ) (S.S. GODARA ) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD : DATED 0 7 /08 /2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,