Shri Prahladbhai Nathalal Patel, Kalol V. The Income Tax Officer , WEard -3, Mehsana

ITA 1913/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0232 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 26-07-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 08-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

I.T.A. NO . 1913 /AHD/201 3 A SSESSMENT Y EAR: 200 8 - 09 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH, SMC , AHMEDABAD [CORAM: PRAMOD KUMAR AM] I.T.A. NO. 1913 /A HD/ 20 1 3 ASSESSMENT Y EAR : 200 8 - 09 PRAHLADBHAI NATHALAL PATEL, .... . ...... . ... . APPELLANT 13, DAVE APARTMENT, OPP. BUS STAND, NEAR AMBIC ANAGAR BUS STAND, KALOL (N.G.) 382 721. DISTT. GANDHINAGAR. [ PAN: A B IPP 8891 P ] VS. IN COME TAX OFFICER, WARD - 3 , MEHSANA . ... ............ . RESPONDENT APPEARANCES BY: TUSHAR P. HEMANI , FOR THE APPELLANT SATISH SOLANKI , FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : 26 .0 7 .2016 DATE OF PRONOUNCING THE ORDER : 25 .10.2016 O R D E R 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTIONS OF THE ORDER DATED 19 TH MARCH 20 13, PASSED BY THE LEARNED CIT(A), IN THE MATTER OF PENALTY UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961, ON THE FOLLOWING GROUNDS : - 1. THE LD. COMMISSIONER OF INCOME TAX (APPEAL), GANDHINAG A R [ CIT(A) FOR SHORT ] HAS GROSSLY ERRED IN LAW AND ON F A C TS IN CONFIRMING AND MODIFYING THE ORDER IMPOSING PENALTY U/S.271(1)(C) OF RS.1,92,865/ - WHICH HA S EMANATED FROM THE ASSESSMENT ORDE R WHICH ITSELF WAS BAD IN LAW HENCE NON - EST. 2. THE LD . CIT ( A ) HAS GROSSLY ERRED IN LAW AND ON FAC T S IN CONFIRMING THE HUGE PENALTY OF RS.1,92,865/ - U/S. 271(1)( C ) OF INCOME TAX ACT, 1961 A ND HAS IN THE PROCESS FAILED TO APPRECIATE THE B A SI C FACTS OF THE C ASE AND SETTL E D LAW. I.T.A. NO . 1913 /AHD/201 3 A SSESSMENT Y EAR: 200 8 - 09 PAGE 2 OF 3 2. BRIEFLY, THE RELEVANT MATERIAL FACTS ARE LIKE THIS. DURING THE COURSE OF SCRUTINY ASSESSMENT PRO CEEDINGS, THE ASSESSEE DISCLOSED LONG TERM CAPITAL GAIN OF RS.9,36,231/ - WHICH WAS NOT DISCLOSED IN THE I NCOME T AX RETURN. THIS GAIN WAS IN RESPECT OF SALE OF 1/6 TH SHARE IN A PLOT OF LAND, AND ALL THE PURCHASE AND SALE TRANSACTIONS IN RESPECT OF THE SAME WERE THROUGH BANKING CHANNELS. ON THESE FACTS, THE ASSESSING OFFICER IMPOSED THE PENALTY U/S. 271(1)(C) AT RS.1,92,864/ - , BEING EQUIVALENT TO THE TAX SOUGHT TO BE EVADED. THE A SSESSING OFFICER WAS OF THE VIEW THAT OFFERING THE AMOUNT ONLY AFTER BEING C AUGHT IN THE ASSESSMENT PROCEEDINGS CANNOT BE TREATED AS VOLUNTARY DISCLOSURE OF SALE CONSIDERATION/LONG TERM CAPITAL GAINS IN THE RETURN OF INCOME FILED F OR THE YEAR. AGGRIEVED, ASSESSEE CARRIED THE MATER IN APPEAL BEFORE THE LEARNED CIT(A) BUT WITHOUT ANY SUCCESS. THE ASSESSEE IS NOT SATISFIED AND IS IN FURTHER APPEAL BEFORE ME. 3. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED T HE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. 4. I HAVE NOTICED THAT IT IS NOT THE CASE THAT THE LONG TERM CAPITAL GAIN ON SALE OF 1/6 TH SHARE IN LAND WAS DISCLOSED IN RESPONSE TO A SPECIFIC QUERY IN RESPECT OF THE SAME. THE TRANSACTION WAS DONE THROUGH THE BANKING CHANNELS AND THE POINT OF TIME WHEN LAND WAS PURCHASED, TH E ASSESSEE WAS NOT MAINTAINING THE BOOKS OF ACCOUNT. IN THESE CIRCUMSTANCES, PARTICULARLY BEARING IN MIND THE FACT THAT ENTIRE SALE PROCEED WAS DULY ACCOUNTED FOR AND THE ASSESSEE S CLAIM THAT THERE WAS INADVERTENT LAPSE IN THE INCOME TAX RETURN, I CONSID ER IT A FIT CASE TO DELETE THE IMPUGNED PENALTY OF RS.1,92,864/ - . THE ASSESSEE GETS THE RELIEF ACCORDINGLY. 5. IN THE RESULT, THE APPEAL IS ALLOWED. P RENOUNCED IN THE OPEN COURT TODAY ON 25 TH DAY OF OCTOBER , 2016. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: THE 25 . TH DAY OF OCTOBER , 2016. PBN/* I.T.A. NO . 1913 /AHD/201 3 A SSESSMENT Y EAR: 200 8 - 09 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FIL E BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD