Balwan Singh, Delhi V. ACIT Range-21(1), New Delhi

ITA 2383/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5358 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 17-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Section: 69; 27; 11; 72; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.2383/DEL/2019 Assessment Year 2008-09 Shri Balwan Singh (Prop. M/s. Balwan Road Carriers) I-3/109, Sector 16, Rohini, Delhi. v. Asst. Commissioner of Income Tax, Range-21(1), New Delhi. TAN/PAN: AOGPS6903J (Appellant) (Respondent) Appellant by: Shri Mohit Bansal, CA Respondent by: Mrs. Suman Malik, Sr.D.R. Date of hearing: 29 03 2022 Date of pronouncement: 04 04 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 c ha ll en gin g t he i mpo si ti on o f pena lt y u n der S e cti on 2 71 D a mou nti ng t o R s. 2 1,8 2, 00 0/ - a nd un d er Sec ti on 27 1E a mo un tin g to Rs .1 6,7 0, 00 0/ - of t he I nc o me Ta x A c t, 1 96 1 (t he Act) con ce rn in g AY 2 00 8- 09. 2. Bri ef l y sta te d, the ass es se e is en ga ged in th e bu si ne ss of tra ns po rt ati on as p rop ri et or of M /s . Bal wa n R oa d C ar ri ers & M /s . Gl oba l Tra ve ll in g Co rp ora ti on . A s ur ve y u nd er Se ct io n 13 3A w as con du ct ed o n 19 .1 1.2 00 7 in t he bu si nes s pr e mis es of t he as se ss ee . Cer ta in d oc u men ts and re gis te rs wer e i mpo un ded f r o m t h e bu si ne ss pre mi se s t ow ard s l orr y re ce ip ts , ex pe nse s a nd o th er e nt r ies . In th e cou rs e of the as se s s ment un de r Se ct io n 14 3( 3) d at ed 3 1. 1 2.2 01 0, the I.T.A. No.2383/Del/2019 2 ass es se e co ul d no t pro du ce a n y bo ok s of acco un ts a nd c l ai med tha t ass es se e d oe s no t ma in ta in an y r e gul ar b oo ks of a c cou nt . Th e ass es s men t wa s c o mple te d on t he bas is of re gi st ers i mp ou nd ed. The se r egi st er s a ll e ged l y c on tai ne d en t iti es of c ash r ec ei pt s a nd ca sh pa yme nt s ex ce edi n g Rs. 20 ,0 00 /- f ro m var io us p er so ns w hic h ar e ad mit te d as ca sh loa n de po si ts re ce ipt s an d ca sh loa n d ep os it s rep a yme nt s. Th e c o mp ete nt au th or it y, i.e ., Ad di ti onal Co mmi s si on er of Inc o me Ta x in v oke d t he p ro vi si on s of Sec ti on s 2 71 D an d 2 71 E f or a lle ge d inf r in g e me nt of Se cti on s 26 9S S an d 2 69 T a nd i mpo se d pen al t y of Rs. 21 , 82, 00 0/ - a nd Rs .1 6,7 0, 50 0/ - re sp ecti vel y. Th e ass es se e cha ll en ge d t he i mp os it io n of pe na lt y u n de r Sec tio ns 2 71 D and 27 1E of t he Act bef or e t he C IT( A) . T he C IT (A ) ho we ver dis mi ss ed th e ap pe al of th e a sse ss ee a nd c onf i r med t he a cti on of the As ses si ng Of f ic er. 3. Bei ng a gg ri ev ed, the a ss es see p ref e rre d ap pea l bef o r e t he Tri bu na l. 4. W h en t he mat te r was ca lle d f or h ea rin g, ld. co unse l f or t he ass es se e s ub mi tte d at t he ou tse t t ha t as se ss ee i s eng a ged in th e bu sin es s of pl yi n g of tru ck an d f ile d re tu rn on t h e ba si s of est i mat io ns wi th re f eren ce t o g ro ss re cei pt s d eri ved. Th e ass es s men t was co mp le te d on the bas is of i mpo un ded ma te ria l and ot he r inc id en ta l i nf or ma t ion . Th e r ec ei pt f r o m tr an sp or tat io n was r ev ise d at Rs .1 ,3 3, 67 ,1 62 /- an d in co me w as r evi se d at R s. 6,6 8, 3 58/ - @ 5 % of the r ece ip t. So m e ot her ad di tio ns w ere a ls o mad e an d ult i mat el y the as se ss me nt wa s f ra me d a t R s. 8, 83 , 35 8/- ag ai ns t r etu r ned in co me of Rs .4 ,7 2, 02 9/- . In th is ba ck dr op, ld. c ou nse l f or t h e a sse ss ee adv er te d to t he s t ate me nt of th e as s ess ee r ec or ded un der Sec ti on 13 3A of the Ac t a s ext ra ct ed i n t he i mp ug ne d p ena lty o rde r p as se d un der Sec ti on s 2 7 1D a nd 2 71 E of t he A ct d ate d 3 0. 0 6.2 01 1 a nd I.T.A. No.2383/Del/2019 3 poi nt ed o ut t ha t w hil e th e f act of th e rec ei pt of ha nd loa ns a nd rep a yme nt t her eof i s n ot d en ie d, it w as po in te d ou t in th e sa me ve in in qu es ti on no .9 o f the st at e men t t ha t s uc h l oa ns were tak en f ro m f amil y me mb er s f o r b us in es s n ee d a n d u se d f or p a ymen t t o dri ve rs and ot her bu si ne ss ass oc ia te s to e na bl e hi m to pl y th e tr u cks . It wa s f urth er p oi nt ed o ut that no b oo ks of acc ou nt s we re mai nta in ed a nd the a ss es se e bei ng uned uc at ed d oe s not u nd er st an d su c h law s. L d. cou ns el p oin te d out th at re pa yme nt h a s b ee n mad e i n f ew da ys ti me aga in st th e r ece ip t f ro m t ra ns po rt ati on an d t he a mou nt in vol ve d a re ver y s ma ll . It wa s f urt he r p oi nte d o ut t hat no in quir y ha s bee n mad e wit h t he c or res p o ndi ng f a mi l y me mber s f or g ra nti ng suc h h an d loa ns . R ef er rin g t o sev er al de ci sio ns ren de re d b y dif f ere nt Be nch es f or ex on er at io n f r o m pe na lt y i n c as e of s uc h i mme d ia te bu sin es s exi ge nc ie s, l d. c ou nse l s ub mi tt ed t ha t hav in g re ga rd t o t he t ot ali t y of the f ac ts, wh ere it i s pr act ic all y u nf eas ib le f or a n une du ca te d/ un der ed uca te d a ss es see or its dr iv er s and s taf f to ma ke ef f ectiv e us e o n an y b a nki ng c ha nn el , a ben ig n vi ew sh ou ld be t ak en con si st en t wit h th e gro un d re ali ti es an d j ud ic ial pro no un c e me nt s an d the pe na lt y i mp os ed un der S ect io ns 27 1D an d 2 71 E shou ld be can ce lle d. 5. Ld. c ou ns el f or th e R ev en ue , on t he ot he r ha nd , r el ie d up on the or de r of t he CI T( A) a nd su b mit te d th at it wa s inc u mb ent u po n the a ss es se e to f ol l ow t he l aw l ai d do wn b y th e st at ut e a nd o ug ht n ot to ha ve in du lge d in rec ei pt of ca sh lo a ns or re pa yme nt t h ere of . T he Ld. DR a cc or di ng l y s u b mit te d th at n o int erf er en ce wit h t he o rde r of the C IT (A ) is ca ll e d f or . 6. W e h ave car ef ul l y con si de re d th e ri va l su b mis si on s. B ef o re we pro ce ed t o a dj ud i cat e the i ss ue , ce rta in f act s are r ei ter at ed f o r con ve ni en ce. T he a sse ss ee i s e ng ag ed as a tr an sp or te r a nd ha s no t I.T.A. No.2383/Del/2019 4 mai nt ai ne d an y re g ula r bo ok s of acc o unt . Th e as se ssme n t has b ee n ma de o n es ti ma ti o ns, kee pi ng in mi nd t he t ra ns por tati on r ece ip ts ear ne d b y th e a ss ess ee wh ic h al so inc lu de s s o me of i mp ug ne d ent ri es t ow ard s ca s h rec ei pt s b y w a y of loan . Th e as se s see i n th e cou rs e of sur ve y its elf , on b ei ng q ue sti one d, r es pond ed t h at th e ca sh has b een r ece iv ed b y w a y of te mp or ar y lo an f r o m f a mi l y me mb ers t o mee t th e b usi ne ss exi ge nc y ha vi ng r e gar d to the natur e of bus ine ss he is i nv ol ve d i n. T he f a ct of b us in es s exi ge nc y h as no t b een d en ie d b y t he Re ve nu e. The CI T( A) ha s d isr eg ar de d th e d ef ens e of t he ass es se e main l y on acc ou nt of the f ac t tha t t he a sses se e ha s f aile d t o co me ou t wi th c o mple te f ac ts an d doc u men ts r eg ard ing th e tra ns ac tio ns . W e f ind tha t th e tu rn o ver r ec ei pt s dec la r ed b y th e ass es se e a t Rs .3 9,6 1,1 95 /- w as en ha nc ed to Rs .1 ,3 3,67 ,1 6 2/- f or th e pur po se s of es ti mat ion of i nc o me b as e d o n s uc h i mpoun d ed rec or ds . The ref o re, i mp os it i on of p en al t y s epa r ate l y t ow ar ds s uch rec ei pt s b y wa y loa n i s no t ju st if ied . Th e im pr om p tu re sp on se of th e p urp or te dl y une du ca te d a ss es se e a t t he ti me of s u rve y, in o ur vi ew , req ui re s t o be se en i n it s na tu r al pe rs pe cti ve a nd req ui re s to b e gi ve n cre de nc e. The a ss es see h as d ecl ar ed th at th e mo ne y w as re ce ived f ro m f a mil y me mb ers to me et the bu si ne ss ex ig e nci es . H av in g r egard to th e nat ur e of b us in es s of th e a ss es se e an d gr o un d re al iti es , s uc h exp la na ti on a pp ea r s pl au si bl e. So me of the ca se l aw of the Ho n’ bl e Hi gh C ou rt s an d Co -or di na te B en ch es of Tri bu na l vi z; DC IT v s. Ru pen D as s, (20 11 ) 7 I TR 55 (Ko l ) ( Tr ib ); CI T vs. Bal aji T ra de rs , (20 08 ) 1 67 Ta xm an 27 (Ma d ); C IT vs. Lax mi Tr us t C o., (20 08 ) 30 3 IT R 9 9 (Ma d ); D CI T v s. V ig ne sh Fl at Ho us in g, (20 07 ) 1 0 5 I TD 35 9 (C hen na i ); Dil lu Ci ne En te rp ris es vs. C IT , (20 02 ) 80 I TD 4 84 (Hy d ); Hi nd us ta n S tee l Li mi te d vs. S ta te of O ri ss a, (19 72 ) 8 3 I T R 26 (S C ) S a ys in co ru s tha t th e br ea ch of Sec ti on s 26 9S S a n d 26 9T f or rec ei pt/ re pa yme n t of ca sh at tri bu ta bl e t o b us in es s e xi g enc ie s i s a I.T.A. No.2383/Del/2019 5 mer e te ch ni ca l or ven ia l br ea ch. Th e asse ss ee h as sh ow n ex ist en ce of reas on ab le cau s e in a cc ep ti ng/ re p a ymen t of ca sh to mee t th e i mme dia te bu si ne ss r eq ui re men ts . In o ur v ie w, mit igat in g cir cu ms ta nc es ex is t s t o ex on er ate t he ass es se e f ro m th e r eco ur se of pen al t y un de r Se cti on s 2 71 D an d 2 71 E of t he A ct. W e acc or di ng l y set as id e t he ord er of the CI T( A) an d ca nc el th e pena l t y i mp os ed un der Sec ti on s 27 1D a nd 2 71 E of the A ct b y th e co mpe ten t aut ho ri t y. 7. In th e res ul t, t he ap pea l of th e as se ss ee is a llow ed. Order pronounced in the open Court on 04/04/2022. Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 04/03/2022 Prabhat