Shri Sajjankumar Suganchand Agarwal,HUF, Surat V. The Dy.CIT.,Circle-2, Surat

ITA 1974/AHD/2011

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8626 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 07-01-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 08-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND SR DR
• Assessee Lawyers: R B SHAH

Judgement Text

, , , , B, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, B BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.1974/AHD/2011 [ASSTT.YEAR : 2004-2005] SAJJANKUMAR SAGANCHAND AGRAWAL HUF PROP. ADARSH SYNTHETICS 3008, MOMIA COMPLEX KADODARA ROAD, SURAT. PAN : AAEHS 1773 G /VS. DCIT, CIR.2 SURAT. ( (( ( -. -. -. -. / APPELLANT) ( (( ( /0-. /0-. /0-. /0-. / RESPONDENT) 1& 2 3 ) / ASSESSEE BY : SHRI R.B. SHAH + 2 3 ) / REVENUE BY : SHRI ROOPCHAND, SR.DR 5 2 &(* / DATE OF HEARING : 7 TH JANUARY, 2015 678 2 &(* / DATE OF PRONOUNCEMENT : 02-02-2015 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSTT.YEAR 2004-2005 IS DIRECTED AGAINST THE OR DER OF THE CIT(A). 2. ONLY EFFECTIVE GROUND OF THE APPEAL OF THE ASSES SEE IS GROUND NO.1, WHICH IS REPRODUCED AS UNDER: 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A S WELL AS LAW ON THE SUBJECT, THE LD.CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF THE ITA NO.1974/AHD/2011 -2- AO IN IMPOSING PENALTY U/S.271(1)(C) OF THE ACT ON ADDITION OF RS.6,02,721/- MADE ON ACCOUNT OF DISALLOWANCE OF CO MMISSION. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIED ON THE ASSE SSEE ON DISALLOWANCE OF SALES COMMISSION PAID BY THE ASSESSEE. HE SUBMITTE D THAT ALL THE MATERIAL FACTS WERE DISCLOSED BY THE ASSESSEE BEFORE THE AO AT THE TIME OF ASSESSMENT ITSELF. HE SUBMITTED THAT THE ASSESSEE HAS FILED CONFIRMATION LETTER AND CONTRA ACCOUNT COPIES OF THE PAYEES AND ALSO THE COPIES OF BILLS WERE FILED. HE SUBMITTED THAT THE ASSESSEE HAS REQ UESTED FOR ISSUE OF SUMMONS TO THE PAYEES OF THE COMMISSION, AND THE AO DID NOT ACCEPT THE REQUEST OF THE ASSESSEE. THE LEARNED DR HAS RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE PENALTY LEVIED ON DISALLOWANCE OF COMMISSION ON SALES WAS CONFIRMED BY THE CIT(A). W E FIND THAT ALL THE MATERIAL PARTICULARS WITH REGARD TO THE CLAIM OF CO MMISSION PAID BY THE ASSESSEE WERE DISCLOSED BY THE ASSESSEE AT THE TIME OF ITS ASSESSMENT. THE ASSESSEE HAS CLAIMED THAT IT HAS FILED CONFIRMATION LETTER AND CONTRA ACCOUNT COPIES OF PAYEES AND THIS FACT COULD NOT BE CONTROV ERTED ON BEHALF OF THE REVENUE. THE ASSESSEE HAS ALSO FILED COPIES OF REL EVANT BILLS. THE ASSESSEE HAS REQUESTED FOR ISSUE OF SUMMONS TO THE PAYEE PARTIES OF COMMISSION AND SAME WAS NOT ACCEPTED BY THE AO. WE FIND THAT FACTS OF THE CASE MAY JUSTIFY THE DISALLOWANCE OF COMMISSION INCOME, WHICH WAS CONFIRMED BY THE TRIBUNAL, BUT DO NOT JUSTIFY THE L EVY OF PENALTY FOR CONCEALMENT OF INCOME OR FILING OF INACCURATE PARTI CULARS OF INCOME UNDER SECTION 271(1)(C) OF THE ACT. IT IS A CASE OF DISA LLOWANCE OF CERTAIN EXPENSES CLAIMED BY THE ASSESSEE AND ALL THE RELEVA NT FACTS WERE PLACED BEFORE THE AO BY THE ASSESSEE AT THE TIME OF ASSESS MENT ITSELF. THE ITA NO.1974/AHD/2011 -3- ASSESSEES CONDUCT BY FILING CONFIRMATION AND CONTR A ACCOUNT COPIES OF PAYEES AND COPIES OF THE RELEVANT BILLS, SEEMS TO B E BONA FIDE AND DO NOT JUSTIFY LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT. IN THESE FACTS, WE CANCEL THE PENALTY LEVIED UNDER SECTION 271(1)(C ) OF THE ACT, AND THE GROUND OF THE APPEAL OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD