ACIT, CENTRAL CIRCLE- 26, NEW DELHI V. VRP LANDBASE PVT. LTD., NEW DELHI

ITA 2267/DEL/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2798 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Appeal Filed On: 01-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 27; 132; 201; 13; 153

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER I.T.A. No.2267/DEL/2018 Assessment Year 2014-15 Asst. Commissioner of Income Tax, Central Circle-26, New Delhi. v. M/s. VRP Landbase Pvt. Ltd., 2, Hyde Park, Prakriti Marg, Sultanpur, New Delhi. TAN/PAN: AACCV5429R (Appellant) (Respondent) Appellant by: Ms. Ruchika Jain, CA Respondent by: Shri T. Kipgen, CIT-DR Date of hearing: 18 04 2022 Date of pronouncement: 09 05 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ap pe al s) -X XI X, Ne w De lh i (‘ CI T( A)’ i n s ho rt) dat e d 09 .0 1. 20 18 ari si ng f ro m t he a sse ss me nt or der da ted 26 .1 2. 20 16 p as sed b y th e As ses si ng Of f ice r (A O) un der S ec tio n 1 53 A r .w .s . 1 53 C/ 14 3(3 ) of the I nc o me Ta x Act , 1 96 1 (t he Ac t) c o nce rn in g AY 2 01 4- 15. 2. W h en th e mat te r w as cal le d f or h ear in g, th e l d. co un se l f or th e ass es se e, at th e o uts et , su b mitt ed t h at th e i mp os itio n of pe na lt y un der Sec ti on 27 1( 1)( c) of th e A ct a m ou nti ng to R s.1, 02 , 01, 11 0/ - is tot al l y o ut si de th e cont ou rs of Se ct i on 2 71( 1) (c ) of th e Act r .w . Ex pla na ti on 5A t he ret o. In th is re ga rd , th e l d. co un se l s ub mit te d t ha t a se ar ch op era ti on was ca rr ied ou t on 11. 09 .2 01 3, i. e. , Fi na nc ia l Yea r 20 13- 14 re le v ant to A ss es s men t Yea r 20 14- 15 a nd t he pe nal t y I.T.A. No.2267/Del/2018 2 was i mpo se d on t h e as ses se d in co me un der Sec ti on 2 71( 1)( c) of th e Act . I n t he ma tte r, the ld . c ou ns el a d ver te d t o t he bar e l ang ua ge of Ex pla na ti on 5A t o Se ct io n 2 71 (1 )( c) a nd po in te d o ut t ha t t he Ex pla na ti on 5 A get s t ri gg ere d an d co m es in to mot io n onl y wh er e th e ass es se e, in th e c o urs e of se arc h ini ti ate d un der Sect io n 13 2 of the Act , is f ou nd t o b e ow ner of mon e y, bul li on , je we lle r y o r o the r val ua bl e a rti cl es or an y i nc o me b as ed on an y e nt r y in th e b oo ks of acc ou nt s a nd s uc h sp ec if ied s ou rce of in co me re la tes to Fi na nc ial Yea r w he re t he re t urn of in co me f or suc h F in an ci al Y ea r/p re vi ou s ye a r ha s b ee n al rea d y f ur ni she d o r wh ere t he du e date f o r f ilin g t he ret ur n of i nc o me f or suc h pre vi ou s year /f ina nc ia l ye a r has ex pi re d. The as se sse e i n th e ins ta nt c ase ho we v er ha s n ei ther f ile d the r et ur n of inc o me no r t he d ue dat e f or f ili ng of ret ur n of in co me h ad ex pir ed at th e t i me of s ear c h. 2.1 It wa s su b mit te d th at th e Fi na nc ial Y e ar 20 13 -14 (A ss es s me nt Yea r 2 01 4- 15 ) is th e ye ar of s ea rch . T his ye a r s ta nd s e xc lud ed f r o m the o pe rat io n Ex pl ana ti on 5 A to Se ct ion 2 71 (1 )( c) as t h e s ti pu lat ed con di ti on s ca nn ot be f u lf ill ed f or t he ye ar i n wh ich t he se ar ch h as bee n c on du ct ed . T he l d. co un se l s u b mitt ed th at th e o nl y o pti on po ssi bl y a va il ab le to th e A ss es si ng O f f icer w as to i nv o ke Se cti on 27 1A AB o n f ulf il l me nt of co nd iti on s spec if ie d th er ein . It wa s t hu s su b mitt ed th at Ex pla na ti on 5A to S ect io n 2 71 (1 )( c) w hic h i s the pre mi se of th e p e nal t y i mpo se d i s a co mp le te no n- start er at t he thr es ho ld an d c on seq ue nt l y th e p en alt y i mp os ed on the bas is of ina pp li ca ble p ro vi s ion s of t he Ac t is i l leg al a nd th us n on e st in l aw . 2.2 The ld . c ou nse l a c cor di ng l y ur ged f o r ca nc ell atio n of p ena lt y i mpo sed u nd er S ec t ion 2 71 (1 )( c) of t he Ac t in q ue sti on . 3. The l d. D R pl ace d rel ia nce of th e p en alt y o r der p as se d b y t he As ses si ng Of f ic er. I.T.A. No.2267/Del/2018 3 4. W e h av e ca ref u ll y c o ns id ere d t he riv al s ub mi ss ion s an d per us ed th e ord er of lo wer a ut hor it ie s. In th e i ns ta nt ca se, a se arc h ope ra ti on wa s ca r rie d ou t o n 11 .0 9 .20 13 a nd 1 7. 09. 201 3 a t the res id en tia l pr e mis es of Sh ri A sh o k Ch ou dh ar y, i .e. , 3 r d p ar t y wh ere in ce rta in do c u ment s b el on gi ng t o th e a ss es se e w ere f ound an d sei ze d. Th e as se ss me nt w as ac co rdi n gl y ca rr ied ou t u n der Se ct io n 15 3A r .w . Se cti on 153 C r. w. S ec ti o n 14 3( 3) of th e Act f or t he As ses s me nt Ye ar 2 01 4-1 5 in q ue st io n . T he i nc o me wa s ass es se d as per t he r et ur ned i n co me b ut h ow eve r it wa s al le ge d th at the re tu rn was f il ed be la te dl y af t er th e du e d at e on 3 1.0 3 .20 16 a nd con se qu en tl y th e wh ole of the re t urn ed in co me i s an a ct of con ce al me nt of p a rti cu lar s of in co m e. P en alt y p ro cee d ing s u nd er Sec ti on 27 1( 1) (c ) wer e i ni ti at ed wh il e p as sin g the a sse s s ment o rde r and p en alt y a t Rs .1 02 ,0 1, 11 0/ - wa s i mpo se d b y in vo ki ng Ex pla na ti on 5 A to Sec ti on 2 71 (1 )(c ) o f the A ct al legi ng c onc ea l men t of pa rt icu la rs of i n co me. 4.1 . In th es e f ac tu al ba ck dr op , we s tra ig ht aw a y n oti ce th at Ex pla na ti on 5A i s app li ca bl e o nl y i n rel at io n t o t he as se sse e wh ere sea rc h ha s bee n i nit ia te d un der S ec tio n 13 2 of t he A ct an d th e ass es se e is f ou nd to be o wne r of the s pe cif ie d va luabl e as se ts. Si gnif i ca nt l y, Ex pl ana ti on 5A is ap pl ica bl e o nl y i n re sp ect of an y pre vi ou s ye a rs w hi ch is cl os ed bef o re th e d at e of se arc h an d wh ere eit he r ( a) th e as ses see h as f u rn is he d t he ret ur n of in co m e b ef ore t he dat e of se ar ch a nd i nco me f ou nd i n t he co ur se of s ea rc h h as no t be en dec la re d in t he r et u rn of in co me o r (b ) the d ue d ate f or f ilin g re tu rn of inc o me f or a n y suc h p re vi ou s ye ar has ex pir ed but th e as se ss ee has n ot f ile d th e ret urn of in co me. 4.2 In t he i nst an t ca s e, ap pa re nt l y, no n e of the c on dit io n s are sat isf i ed. Ne it he r t he s ea rch ha s be en carr ie d o ut i n t he cas e of th e I.T.A. No.2267/Del/2018 4 ass es se e n or th e pr evi ou s ye a r, i. e. , 2 01 3-1 4 wh ic h i s ye ar of sea rc h is co ve red b y a mb i t of E xp la na ti on 5 A t o Se cti on 2 71 (1 )(c ) of th e Act . No ne of t he c on dit io ns f or ap pl i cat io n of Ex plan at i on 5A a re su bsi st in g i n th e f acts of the c as e. T h e i mpo si ti on of pe n alt y o n th e cou nt er s of E xp la n ati on 5A is d ev oid of an y le gi ti ma c y. Un der th es e cir cu ms ta nc es, w e see p ri ma fa ci e me rit i n t he p lea of t he as se ss ee in su pp or t of re li ef gra nt ed b y t he L d. CI T( A). 4.3 The i mp o sit io n of pena lt y b y the A sse ss in g Of f ice r w ith ou t sat isf yi n g th e co nd iti on s of Ex pla na ti on 5 A in vo ke d in t he pr es en t cas e is t hu s ba d in law, a nd t he ref or e , rig ht l y ca nc el le d b y th e Ld . CI T( A). 6. In th e res ul t, t he ap pea l of th e Re ve nu e is d is mi ss ed . Order pronounced in the open Court on 09/05/2022. Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 09/05/2022 Prabhat