V.Srinivasan (HUF), Villupuram V. ITO, Villupuram

ITA 194/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7372 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 28-01-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: D ANAND
• Keywords: Opportunity of being heard
• Section: 271(1)(c); 143(3)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.194/CHNY/2019 / ASSESSMENT YEAR: 2011-12 V. SRINIVASAN (HUF), 181, BAZAAR STREET, SANKARAPURAM, VILLUPURAM 605 111. [PAN: AABHV0281P] VS. THE INCOME TAX OFFICER, WARD 2, VILLUPURAM. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI D. ANAND, ADVOCATE / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT / DATE OF HEARING : 23.04.2019 /DATE OF PRONOUNCEMENT : 30.04.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL), PUDUCHERRY, DATED 29.06.2017 RELEVANT TO THE ASSESSMENT YEAR 2011-12 PASSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT]. 2. THE APPEAL FILED BY THE ASSESSEE IS DELAYED BY 516 DAYS, FOR WHICH, THE LD. COUNSEL FOR THE ASSESSEE HAS FILED AN AFFIDAVIT FOR CONDONATION OF THE DELAY, TO WHICH; THE LD. DR HAS NOT RAISED ANY SERIOUS OBJECTION. CONSEQUENTLY, SINCE THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE, THE I.T.A. NO. 194/CHNY/19 2 DELAY OF 516 DAYS IN FILING OF THE APPEAL STANDS CONDONED AND THE APPEAL IS ADMITTED FOR ADJUDICATION. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURNED OF INCOME FOR THE ASSESSMENT YEAR 2011-12 ON 28.09.2011 RETURNING AN INCOME OF .2,51,756/-. THE RETURN OF INCOME WAS SELECTED FOR SCRUTINY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED CASH DEPOSITS TO THE TUNE OF .41,89,000/- CREDITED IN LAKSHMI VILAS BANK, SANKARAPURAM. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT BY7 MAKING AN ADDITION OF .23,14,320/-. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE FACTS OF THE CASE, THE LD. CIT(A) ENHANCED THE ASSESSMENT TO .38,22,700/-. IN PURSUANT TO THE APPELLATE ORDER, PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT WERE INITIATED. DURING THE COURSE OF PENALTY PROCEEDINGS, THE LD. CIT(A) HAS OBSERVED THAT THE BANK ACCOUNT WITH LAKSHMI VILAS BANK, SANKARAPURAM WAS NOT REFLECTED IN ASSESSEES BOOKS OF ACCOUNT AND IN TURN IN THE BALANCE SHEET. THUS, THE ASSESSEE CONCEALED THE PARTICULARS OF INCOME AND FURNISHED INACCURATE PARTICULARS OF HIS INCOME ASSESSABLE TO TAX. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. I.T.A. NO. 194/CHNY/19 3 4. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE QUANTUM ADDITION OF ENHANCEMENT OF ASSESSMENT IS PENDING BEFORE THE ITAT AND BEFORE ADJUDICATION OF MAIN APPEAL, THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT IS NOT MAINTAINABLE AND PRAYED FOR DELETING THE PENALTY. 5. ON THE OTHER HAND, THE LD. DR RELIED ON THE PENALTY ORDER. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IN THIS CASE, ASSESSMENT UNDER SECTION 143(3) OF THE ACT WAS COMPLETED BY MAKING AN ADDITION OF .23,14,320/-. ON APPEAL, THE LD. CIT(A) ENHANCED THE ASSESSMENT TO .38,22,700/- IN TERMS OF SECTION 251(2) OF THE ACT. IN PURSUANT TO THE APPELLATE ORDER, THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIED ON THE GROUND THAT THE ASSESSEE HAS CONCEALED THE PARTICULARS OF INCOME AND FURNISHED INACCURATE PARTICULARS OF HIS INCOME ASSESSABLE TO TAX SINCE THE ASSESSEE HAS NOT ADMITTED BANK ACCOUNT WITH LAKSHMI VILAS BANK, SANKARAPURAM IN ITS BOOKS OF ACCOUNT AND IN TURN IN THE BALANCE SHEET. IT WAS ARGUED BY THE LD. COUNSEL FOR THE ASSESSEE THAT THE QUANTUM ADDITION OF ENHANCEMENT OF ASSESSMENT IS PENDING FOR ADJUDICATION BEFORE THE TRIBUNAL AND THEREFORE, LEVY OF PENALTY IS NOT WARRANTED. WE FIND THAT AGAINST THE QUANTUM ADDITION, THE ASSESSEE PREFERRED FURTHER APPEAL BEFORE THE TRIBUNAL AND VIDE ORDER IN I.T.A. NO. 885/CHNY/2017 DATED I.T.A. NO. 194/CHNY/19 4 14.08.2017, THE TRIBUNAL REMITTED THE MATTER BACK TO THE FILE OF ASSESSING OFFICER FOR FRESH CONSIDERATION, WE ARE OF THE CONSIDERED OPINION THAT THE ISSUE OF LEVY OF PENALTY NEEDS TO BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION AFTER DECIDING THE QUANTUM. ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION AFTER ALLOWING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 30 TH APRIL, 2019 IN CHENNAI. SD/- SD/- (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 30.04.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.