Appeal Details
Counselvise Citation
236120514 RSA 2011
Assessee PAN
Bench
Appeal Number
CRN Number
Duration Of Justice
3 year(s) 9 month(s) 2 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
19-06-2015
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Next Hearing Date
17-06-2015
Assessment Year
2005-2006
Appeal Filed On
16-09-2011
Judgement Text
, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ././ ./ ITA NO. 2361/AHD/2011 / ASSESSMENT YEAR: 2005-06 REKHABEN RAJENDRA SHAH, M-12, MEGH MAYUR PLAZA, PARLE POINT, SURAT PAN : AFXPS 3544 P V/S. ACIT, CIRCLE-3, SURAT / // / (APPELLANT) !' !' !' !' / // / (RESPONDENT) ASSESSEE(S) BY : SHRI S.B. VAIDYA, AR REVENUE BY : SMT. SONIA KUMAR, SR. DR. #$ % &'/ // / DATE OF HEARING : 17/06/2015 () % &' / // / DATE OF PRONOUNCEMENT: 19/06/2015 *+ *+ *+ *+/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS DIRE CTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX(APPEALS )-II, SURAT DATED 26.04.2011, PERTAINING TO ASSESSMENT YEAR 2005-06. 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE REV ENUE IS AGAINST THE SUSTENANCE OF PENALTY ON THE ADDITION OF RS.1,00,00 0/- IN RESPECT OF GIFTS RECEIVED BY THE ASSESSEE. 3. THE ASSESSING OFFICER HAS LEVIED THE PENALTY OF RS.8,61,294/- IN RESPECT OF FOLLOWING ADDITIONS. SR. NO. ADDITION IN RESPECT OF AMOUN T 1 ADDITION U/S 69 ON ACCOUNT OF UNEXPLAINED INVESTMENT IN LAND RS.16,03,810/- 2 ADDITION U/S 69 ON ACCOUNT OF UNEXPLAINED INVESTMENT IN LAND RS.8,55,000/- 3 ADDITION U/S 68 ON ACCOUNT OF UNEXPLAINED GIFT RS.1,00,000/ - ITA NO. 2361/AHD/2011 REKHABEN RAJENDRA SHAH VS. ACIT FOR AY 2005-06 2 4. IN THE QUANTUM APPEAL, THE ITAT DELETED THE ADDI TIONS OF RS.16,03,810/- AND RS.8,55,000/-; HOWEVER, SUSTAINE D THE ADDITION OF RS.1,00,000/- IN RESPECT OF TWO GIFTS OF RS.50,000/ - EACH RECEIVED BY THE ASSESSEE. THE CIT(A) DELETED THE PENALTY IN RESPECT OF ADDITION OF RS.16,03,810/- AND RS.8,55,000/- WHICH WERE DELETED BY THE ITAT; BUT, HE SUSTAINED THE PENALTY IN RESPECT OF ADDITION OF RS. 1,00,000/- FOR UNEXPLAINED GIFTS. THE ASSESSEE IS IN APPEAL AGAINST THE PENALT Y SUSTAINED. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. WE FIND THAT THE ASSESSEE HAS RECEIVED T HE GIFT OF RS.50,000/- EACH FROM SHRI PAWAN JUTHAWAT AND MS. MANGALA JAIN. THE ASSESSEE HAS PRODUCED THE COPY OF GIFT DECLARATION AND COPY OF R ETURN OF INCOME OF BOTH THE DONORS. HOWEVER, THE ASSESSING OFFICER AS WELL AS THE ITAT DID NOT ACCEPT THE CLAIM OF GIFT OF ASSESSEE BY HOLDING THA T THE ASSESSEE WAS NOT ABLE TO PROVE THE CREDITWORTHINESS OF THE DONORS. AFTER CONSIDERING THE FACTS OF THE CASE AND ARGUMENTS OF BOTH THE SIDES, WE DO NOT CONSIDER IT AS A FIT CASE FOR LEVY OF PENALTY U/S 271(1)(C). THE ASSESSEE HA S PRODUCED THE CONFIRMATION FROM THE DONORS. BOTH THE DONORS ARE A SSESSED TO THE INCOME- TAX. THEREFORE, MERELY BECAUSE THE ASSESSEES EXPL ANATION HAS NOT BEEN ACCEPTED FOR A MEAGER GIFT OF RS.50,000/-FROM EACH DONOR, IT CANNOT BE SAID THAT THE ASSESSEE HAS CONCEALED THE PARTICULARS OF INCOME SO AS TO LEVY THE PENALTY U/S 271(1)(C) AND, THEREFORE, THE PENALTY I S CANCELLED. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 19 TH JUNE, 2015 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 19/06/2015 BIJU T., PS ITA NO. 2361/AHD/2011 REKHABEN RAJENDRA SHAH VS. ACIT FOR AY 2005-06 3 *+ % !&, -*,& *+ % !&, -*,& *+ % !&, -*,& *+ % !&, -*,&/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. & #. / CONCERNED CIT 4. #. ( ) / THE CIT(A) 5. ,12 !& , , / DR, ITAT, AHMEDABAD 6. 2 4$ / GUARD FILE . *+# *+# *+# *+# / BY ORDER, TRUE COPY 5 55 5/ // / 6 6 6 6 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD
Other Referred Cases
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Laws Referred To
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Expert Summary
The Assessing Officer had levied penalty of Rs. 8,61,294/- in respect of three additions viz. two additions u/s 69 on unexplained investments of Rs. 16,03,810/- and Rs. 8,55,000/- and a third addition u/s 68 on account of unexplained gift of Rs. 1,00,000/-. In quantum appeal, the first two additions were deleted and the addition on the gift of Rs. 1,00,000/- was sustained. In regard to the gift, the Tribunal held that the assessee had produced the copy of the gift declaration, the copy of the return of the donors and confirmation from the donors; therefore, merely because the assessee’s explanation was not accepted, it cannot be said that the assessee had concealed the particulars of income. Penalty deleted. [In favour of assessee]
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