Deputy Commissioner of Income-tax, Circle - 8, Pune V. Sheetal K Tejwani, Pune

ITA 2165/PUN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5163 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 14-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJEEV GHEI
• Keywords: Depreciation; Tax effect

Judgement Text

SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE . , BEFORE SHRI D. KARUNAKARA RAO, AM . / ITA NO.2165/PUN/2017 / ASSESSMENT YEAR : 2013-14 DCIT, CIRCLE-8, PUNE . /APPELLANT VS. MRS. SHEETAL K. TEJWANI, OFFICE NO.23, B-WING, JEWEL OF PIMPRI, MUMBAI PUNE HIGHWAY, PUNE 411 018 PAN : AEFPT6719Q . / RESPONDENT / APPELLANT BY : SHRI SANJEEV GHEI / RESPONDENT BY : NONE / DATE OF HEARING : 04.10.2018 / DATE OF PRONOUNCEMENT: 05.10.2018 / ORDER PER D. KARUNAKARA RAO, AM : THIS IS THE APPEAL FILED BY REVENUE AGAINST THE ORDER OF CIT(A)-6, PUNE DATED 02-05-2017 FOR THE ASSESSMENT YEAR 2013-14. 2. GROUNDS RAISED BY THE REVENUE ARE EXTRACTED BELOW : 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD.CIT(A) IS JUSTIFIED IN REDUCING THE PENALTY LEVIED U/S.271 (1)(C) OF THE I.T. ACT, 1961, FOR FURNISHING OF INACCURATE PARTICULARS OF I NCOME, HOLDING THAT THERE IS NO FINDING OF ANY EVASION? 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE THE LD.CIT(A) IS JUSTIFIED IN NOT FOLLOWING THE OBSERVATIONS OF H ONBLE SUPREME COURT IN THE CASE OF MAK DATA PVT. LTD. 38 TAXMAN 448 (SC), IN WHICH APEX COURT CLEARLY HELD THAT, VOLUNTARY DISCLOSURE DOES NOT AB SOLVE ASSESSEE FROM PENALTY? 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTE R ANY OF THE ABOVE GROUNDS OF APPEAL. ITA NO.2165/PUN/2017 MRS. SHEETAL K. TEJWANI 2 3. BRIEFLY STATED RELEVANT FACTS INCLUDES THAT THE ASSESS EE IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF LAND TRADING. ASSESS EE FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS.22,42,070/-. TH ERE WAS SURVEY IN THE BUSINESS PREMISES OF ASSESSEE WHICH RESULTE D IN SEIZURE OF CERTAIN PAPERS. ASSESSEE OFFERED RS.1 CRORE AS ADDITIONAL IN COME. IN THE ASSESSMENT, AO MADE COUPLE OF ADDITIONS ON ACCOUNT OF INTE REST AND DEPRECIATION AND EVENTUALLY ASSESSED THE INCOME OF THE A SSESSEE AT RS.34,47,070/-. AO INITIATED PENALTY PROCEEDINGS U/S.271(1)(C) O F THE ACT FOR FURNISHING INACCURATE PARTICULARS OF INCOME AND CONC EALING INCOME AND LEVIED PENALTY OF RS.31 LAKHS. IN THE FIRST APP ELLATE PROCEEDINGS, THE CIT(A) SUSTAINED THE PENALTY ON THE SUM OF RS.62 LAKH S ONLY AND REASONED THAT THERE IS NO SPECIFIC FINDING OF ANY EVASION. THUS, OUT OF UNDISCLOSED INCOME OF RS.1 CRORE AND GAVE RE LIEF ON THE BALANCE AMOUNT OF RS.38 LAKHS. AGGRIEVED WITH THE ORDER OF CIT(A), THE REVENUE FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL WITH T HE AFOREMENTIONED GROUNDS. 4. BEFORE ME, LD. DR FOR THE REVENUE NARRATED THE FACTS AND PRAYED FOR CONFIRMING THE ORDER OF AO. HOWEVER, HE FAIRLY SUBMITTED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS ONLY RS.12,91,520/-. HOWE VER, THERE IS NONE TO REPRESENT THE ASSESSEE. 5. HEARD THE LD. DR FOR THE REVENUE AND PERUSED THE OR DERS OF THE REVENUE ON THE ISSUE OF REDUCTION OF PENALTY U/S.271(1)(C) OF THE ACT BY THE CIT(A). HOWEVER, ON GOING THROUGH THE FACTS OF THE C ASE, I FIND THE TOTAL TAX EFFECT INVOLVED IN THE PRESENT APPEAL WORKS IS O NLY RS.12,91,620/-. THE CBDT CIRCULAR NO.3/2018 DATED 11 TH JULY, 2018 RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEAL BY T HE DEPARTMENT BEFORE THE TRIBUNAL TO RS.20 LAKHS. THE CIRC ULAR APPLIES TO ITA NO.2165/PUN/2017 MRS. SHEETAL K. TEJWANI 3 THE PENDING APPEALS OF THE DEPARTMENT BEFORE THE TRIBUNA L TOO. THUS, IN VIEW OF THE CBDT CIRCULAR, I AM OF THE OPINION THAT THE PRESENT APPEA L OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT WITHOUT GOING INTO THE MERITS OF THE CASE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 05 TH DAY OF OCTOBER, 2018. SD/- (D.KARUNAKARA RAO) / ACCOUNTANT MEMBER / PUNE; DATED : 05 TH OCTOBER, 2018. SATISH / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A)-6, PUNE 4. / THE PR.CIT-5, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. / BY ORDER, //TRUE COPY// SENIOR PRIVA TE SECRETARY , / ITAT, PUNE