Shri Dipakkumar Kumarpal Sheth, Ahmedabad V. The Income tax Officer,Ward-6(3), Ahmedabad

ITA 2081/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0457 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-06-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 07-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVATIA

Judgement Text

I.T.A. NO . 2081 /AHD/201 3 A SSESSMENT Y EAR: 200 8 - 09 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH, SMC , AHMEDABAD [CORAM: PRAMOD KUMAR AM] I.T.A. NO. 2081 /AHD/ 20 1 3 ASSESSMENT Y EAR : 200 8 - 09 DIPAKKUMAR KUMARPAL SHETH ................... . APPELLANT ADC BANK BUILDING, ST ROA D, SANAND, DT. AHMEDABAD 382 110 . [ PAN: AINPS 2560 C ] VS. INCOME TAX OFFICER, WARD 6(3), AHMEDABAD . ...... . ... . RESPONDENT APPEARANCES BY: S.N. DIVATIA , FOR THE APPELLANT KEYUR PATEL , FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARI NG : 30 .06.2016 DATE OF PRONOUNCING THE ORDER : 29 . 0 9 .2016 O R D E R 1. BY WAY OF THIS APPEAL, THE A SSESS EE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 1 4 TH JUNE , 2013, PASSED BY THE LEARNED CIT(A), IN THE MATTER OF PENA LTY UNDER SECTION 2 71(1)(C) OF THE INCOME TAX ACT 1961, FOR THE ASSESSMENT YEAR 200 8 - 09. 2. GRIEVANCE OF THE ASSESSEE IS THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C A SE, LEARNED CIT (A) ERRED IN CONFIRMING THE PENALTY OF RS. 4,53,580/ - IMPOSED UNDER S ECTION 271(1)(C) OF THE ACT. 3. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFIC E R NOTICED THAT THE SHORT TERM CAPITAL GAIN OF RS.14,24,800/ - , ON SALE OF CERTAIN PROPERTY, WAS OFF E RED TO T A X ONLY DURING THE ASSESSMENT PROC EE DING AN D THAT IT WAS NOT DISCLOSED IN THE INCOME TAX RETURN. IT WAS IN THIS BACKDROP THAT THE PENALTY PROCEEDING S WERE INITIATED . I.T.A. NO . 2081 /AHD/201 3 A SSESSMENT Y EAR: 200 8 - 09 PAGE 2 OF 2 THE ASSESSEE S EXPLANATION WAS THAT THE SAID INCOME WAS OFFERED ON ASSESSEE S OWN, THAT THE SALE CONSIDERATION WAS DULY ACCOUNTED F OR, AND THAT THE MISTAKE OF THE ASSESSEE IN NOT DISCLOSING THE SHORT TERM CAPITAL GAIN IN INCOME TAX RETURN WAS INADVERTENT, BONAFIDE AND UNINTENTIONAL . HOWEVER , THE ASSESSING OFFICER REJECTED THE EXPLANATION AND PROCEEDED TO IMPOSE THE PENALTY FOR CONCEA LMENT OF INCOME. AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE LEARNED CIT ( A ) BUT WITHOUT SUCCESS. NOT SATISFIED, THE A SSESSEE IS IN FURTHER APPEAL BEFORE ME. 4. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING PERUS E D THE MATERIAL ON RECORD, I FI ND THAT, AS A MATTER OF RECORD, THE SHORT TERM CAPITAL G A IN WAS OFFERED TO TAX BY THE ASSESSEE MUCH BEFORE THE ASSESSING OFFICER H A VING DETECTED THE SAME AND ISSUING RESPECTIVE NOTICE. IN THIS VIEW OF THE MATTER, THE ASSESSEE S CL A IM OF INADVERTENT MIS TAK E CANNOT BE BRUSHED ASIDE. THE SALE PROCEEDS WERE ROUTED THROUGH THE BANK ACCOUNT DULY DISCLOSED TO REVENUE AUTHORITIES. KEEPING IN MIND ALL THESE FACTORS, AS ALSO ENTIRETY OF THE CASE, I AM INCLINED TO DELETE THE IMPUGNED PENALTY. I ORD E R SO. 5 . IN TH E RESULT, THE APPEAL IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF SEPTEMBER, 2016. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: THE 29 TH DAY OF SEPTEMBER , 2016. PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD