The ITO, Ward-1(1), Bhavnagar V. Shri Gopalbhai Parshottambhai Dungrani, Bhavnagar

ITA 2209/AHD/2008

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9693 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-11-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 10-06-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTA
• Keywords: Gift

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A AHMEDABAD BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER AND SHRI MAHAVIR SINGH, JUDICIAL MEMBER ITA NO.2209/AHD/2008 ASSESSMENT YEAR:2004-05 DATE OF HEARING:9.11.10 DRAFTED:10.1110 INCOME TAX OFFICER, WARD-1(1), BHAVNAGAR V/S . SHRI GOPALBHAI PARSHOTTAMBHAI DUNGRANI, 157-B, VIJAYRAJNAGAR, BHAVNAGAR, PAN NO.ACOPD6501F (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI R.K. DHANESTA, DR RESPONDENT BY:- NONE (WRITTEN SUBMISSION) O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS ARISING OUT OF THE O RDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XX, AHMEDABAD IN APPEAL NO.CIT (A)-XX/102/2007-08 DATED 29-02-2008. THE ASSESSMENT WAS FRAMED BY ITO, 1(1), BHAVNAGAR U/S143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS T HE ACT) VIDE HIS ORDER DATED 29- 12-2006 FOR ASSESSMENT YEAR 2004-05. THE PENALTY UN DER DISPUTE WAS LEVIED BY ASSESSING OFFICER U/S 271(1)(C) OF THE ACT VIDE HIS ORDER DATE 17-10-2007. 2. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) IN DELETING THE PENALTY OF RS.11,06,244/- LEVIED BY AS SESSING OFFICER U/S 271(1)(C) OF THE ACT. 3. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E AND PERUSED THE MATERIALS ON RECORD AND WRITTEN SUBMISSION FILED BY ASSESSEE. THE BRIEF FACTS LEADING TO THE ABOVE ISSUE ARE THAT THE ASSESSEE IS AN INDI VIDUAL AND DERIVING THE INCOME BY WAY OF DIAMOND CUTTING AND POLISHING JOB WORK. DURI NG THE COURSE OF PENALTY PROCEEDINGS THE ASSESSING OFFICER STATED THAT THE A SSESSEE CREDITED SO-CALLED GIFT AMOUNTS RECEIVED OF RS.33,31,578/- BY FILING AN AFF IDAVIT THAT WAS NOT DULY NOTARIZED ITA NO.2209/AHD/2008 A.Y 2004-05 ITO WD-1(1), BNG V. SH. GOPALBHAI P DUNGRANI PAGE 2 BEFORE THE INDIAN EMBASSY IN BELGIUM. THE AO HAD NO T ACCEPTED THE EXPLANATION GIVEN BY THE ASSESSEE AND IMPOSED PENALTY OF RS.11, 06,244/- ON THE GROUND OF FURNISHING OF INACCURATE PARTICULARS. THE CIT(A) CO NSIDERING THE SUBMISSIONS OF THE ASSESSEE DELETED THE PENALTY ACCEPTING THE EXPLANAT IONS STATED BY ASSESSEE AND THE GENUINENESS OF TRANSACTION. THE DEPARTMENTAL FILED APPEAL AGAINST THE ORDER OF CIT(A). THE ASSESSEE FILED WRITTEN SUBMISSION STATI NG THAT THE QUANTUM ADDITION MADE ON THE TRANSACTIONS INVOLVED IN ISSUE BEFORE U S IS DELETED BY THE TRIBUNAL IN ITA NO.2083/AHD/2007 DATED 13-10-2010. THE ABOVE FACTS PROVE THAT THE AS SESSEE PROVED THE GENUINE GIFTS IN THE MATTER AND AS SUCH NO ADDITION COULD BE MADE AGAINST THE ASSESSEE ON THE AMOUNT RECEIVED THROUGH RIB CERTIFICATES AND INTEREST THEREON, WHICH IS OTHERWISE EXEMPT U/S10(15)(I) OF THE ACT AND THE ADDITION IS CLEARLY UNJUSTIFIED. THE ASSESSEE STATED IN WRITTEN SUBMISS IONS THAT AS THE QUANTUM HAS BEEN DELETED AND PENALTY IMPOSED BY ASSESSING OFFIC ER U/S 271(1)(C) CANNOT BE SURVIVED AND THE REVENUES APPEAL DESERVES TO BE DI SMISSED. 4. AS THE TRIBUNAL HAS ALREADY DELETED THE QUANTUM ADDITIONS, THE PENALTY LEVIED U/S 271(1) OF THE CANNOT SURVIVE. ACCORDINGLY, THI S APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 09/11/2010 SD/- SD/- (N.S.SAINI) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, DATED : 09/11/2010 DKP COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)-XX, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD