The ITO, Ward-8(3), Ahmedabad V. Smt. Mughisa Sayad, Ahmedabad

ITA 2162/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80261 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 30-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Keywords: Wrong claim
• Section: 54F

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.2162/AHD/2011 [ASSTT.YEAR : 2008-2009] THE ITO, WARD-8(3) AHMEDABAD. /VS. SMT. MUGHISA SAYAD HOTEL KING PALACE HASUN C/O. SHAD HOTEL (P). LTD. C/O. SHAD HOTEL P. LTD. KHANPUR, AHMEDABAD. PAN : AAGPH 2887 J ( (( (-. -. -. -. / APPELLANT) ( (( (/0-. /0-. /0-. /0-. / RESPONDENT) + 1 2 )/ REVENUE BY : SHRI B.L. YADAV, SR.DR 4& 1 2 )/ ASSESSEE BY : NONE 5 1 &(*/ DATE OF HEARING : 7 TH JULY, 2014 678 1 &(*/ DATE OF PRONOUNCEMENT : 08/08/2014 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSTT.YEAR 2008-2009 IS DIRECTED AGAINST TH E ORDER OF THE CIT(A). 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE RESPONDENT, AND ACCORDINGLY, THE APPEAL OF THE REV ENUE IS BEING DISPOSED OF EX PARTE QUA THE ASSESSEE-RESPONDENT ON MERITS AFTER HEARING THE LEARNED DR. ITA NO.2162/AHD/2011 -2- 3. THE ONLY GROUND OF THE APPEAL OF THE REVENUE IS AS UNDER: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY OF RS.5,00,000/- LEVIED U/S.271(1)(C) OF TH E ACT. 4. THE LEARNED DR SUBMITTED THAT THE ASSESSEE HAS C LAIMED A WRONG DEDUCTION UNDER SECTION 54F OF THE ACT, AND THEREFO RE, IS GUILTY OF FILING INACCURATE PARTICULARS OF INCOME. HE REFERRED TO T HE RELEVANT PORTIONS OF THE PENALTY ORDER PASSED BY THE AO. HE SUBMITTED T HAT BUT FOR SELECTION OF THE ASSESSEES CASE FOR SCRUTINY, THE WRONG CLAIM O F DEDUCTION UNDER SECTION 54F COULD NOT HAVE BEEN DETECTED BY THE REV ENUE. HE RELIED ON THE ORDER OF THE AO. 5. WE HAVE CONSIDERED SUBMISSION OF THE LEARNED DR AND ALSO PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THIS IS A CASE OF PENALTY IMPOSED UNDER SECTION 271(1)(C) OF THE ACT ON DISALLOWANCE OF DEDUCTION CLAIMED BY THE ASSESSEE UNDER SECTION 54F OF THE AC T. WE FIND THAT THE ASSESSEE HAS FILED ALL MATERIAL FACTS NECESSARY FOR ITS ASSESSMENT AT THE ASSESSMENT STAGE ITSELF. IT IS A CASE WHERE NOT ON LY THE ASSESSEE HAS DISCLOSED ALL THE PARTICULARS REGARDING ITS CLAIM I N THE RETURN OF INCOME, BUT ALSO THIS IS A CASE WHERE THE AO HAS ALLOWED THE CL AIM OF THE ASSESSEE IN PART ONLY. THE DEDUCTION CLAIMED BY THE ASSESSEE U NDER SECTION 54F WAS REDUCED BY THE AO, AS THE COMPUTATION OF CLAIM WAS NOT FOUND CORRECT. THE CIT(A) HAS RECORDED THAT THE ASSESSEE HAS GIVEN ALL THE PARTICULARS REGARDING THE CLAIM IN THE RETURN OF INCOME, LIKE A MOUNT OF SALE CONSIDERATION, COST OF ASSET SOLD AS WELL AS THE QU ANTUM OF INVESTMENT MADE IN THE HOUSE PROPERTY, WAS CORRECTLY MENTIONED BY THE ASSESSEE IN THE RETURN OF INCOME. THE ASSESSEE WAS UNDER BONA FIDE BELIEF THAT HE SHALL BE ENTITLED FOR THE DEDUCTION ON THE TOTAL SALE CONSID ERATION. WE FIND THAT NO ITA NO.2162/AHD/2011 -3- FINDING WAS RECORDED BY THE AO THAT THE CLAIM OF TH E ASSESSEE FOR DEDUCTION WAS FALSE OR THAT NO DETAILS WERE FILED B Y THE ASSESSEE. WE FIND THAT THE CIT(A) HAS FOLLOWED THE DECISION OF THE HO NBLE SUPREME COURT IN THE CASE OF RELIANCE PETRO PRODUCTS P. LTD., 322 ITR 158 AND HAS DELETED THE PENALTY. THERE BEING NO MISTAKE IN TH E ORDER OF THE CIT(A) ON THIS ISSUE, HIS ORDER IS CONFIRMED AND THE GROUN D OF APPEAL OF THE REVENUE IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. 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