Smt. Manokanta Saraf, Surat V. The Income tax Officer,Ward-3(1), Surat

ITA 2384/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89243 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 20-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD .., , BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO.2384/AHD/2011 ( / ASSESSMENT YEAR : 2007-08) SMT. MANOKANTA SARAF L/H OF LATE SHRI RAJKUMAR SARAF B-505, AASHIRWAD PARK CITY LIGHT, PARLE POINT SURAT 395 008 / VS. THE INCOME TAX OFFICER WARD-3(1) SURAT ./ ./ PAN/GIR NO. : AMCPS 0195 E ( # / APPELLANT ) .. ( $% # / RESPONDENT ) #& / APPELLANT BY : NONE (WRITTEN SUBMISSIONS) $% #'& / RESPONDENT BY : SHRI M.K. SINGH, SR.DR ()'* / DATE OF HEARING 23/03/2015 +,-.'* / DATE OF PRONOUNCEMENT 10/04/2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-II, SURAT (CIT(A) IN SHORT) DATED 11/07/2011 PERTAINING TO ASSESSMENT YEAR (AY) 2007-08. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- ITA NO.2384/AHD /2011 SMT. MANOKANTA SARAF VS. ITO ASST.YEAR 2007-08 - 2 - 1] THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE LEARNED CIT(APPEAL) ERRED IN CONFIRMING THE PENALTY OF RS.1,77,968/- AS LEVIED U/S.271(1)(C) OF THE INCOME TAX ACT. 2] THE APPELLANT RESERVE HIS RIGHT TO ADD, ALTER OR DELETE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE A SSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143( 3) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 31/12/2009, THEREBY THE ASSESSING OFFICER (AO IN SHORT) MADE ADDITION U/S.69A OF THE ACT AMOUNTING TO RS.6,52,99 2/- AND ALSO INITIATED PENALTY U/S.271(1)(C) OF THE ACT. THE ASSESSEE PRE FERRED AN APPEAL (QUANTUM APPEAL) BEFORE THE LD.CIT(A), WHO AFTER CO NSIDERING THE SUBMISSIONS OF THE ASSESSEE, RESTRICTED THE ADDITIO N TO RS.1,57,668/-. HOWEVER, MEANWHILE, THE AO LEVIED PENALTY AMOUNTING TO RS.1,77,968/- ON ADDITION OF RS.6,52,992/-. THE ASSESSEE PREFERR ED AN APPEAL BEFORE THE LD.CIT(A) AGAINST THE PENALTY ORDER DATED 29/06/201 0. THE LD.CIT(A) VIDE HIS ORDER DATED 11/07/2011 IN PENALTY APPEAL C ONFIRMED THE PENALTY. THE ASSESSEE IS AGGRIEVED BY THE CONFIRMATION OF PE NALTY IN THIS APPEAL. 3. NO ONE APPEARED ON BEHALF OF THE ASSESSEE. HOWE VER, WRITTEN SUBMISSIONS ARE PLACED ON RECORD. THEREFORE, THE H EARING OF THE APPEAL WAS TAKEN UP IN THE ABSENCE OF THE ASSESSEE. IN TH E SUBMISSION DATED 06/01/2014, IT IS SUBMITTED BY THE AR OF THE ASSESS EE THAT IN QUANTUM ITA NO.2384/AHD /2011 SMT. MANOKANTA SARAF VS. ITO ASST.YEAR 2007-08 - 3 - PROCEEDINGS, THE ADDITION OF RS.6,52,992/- WAS REDU CED TO RS.1,57,668/- BY THE LD.CIT(A) VIDE ORDER DATED 15/10/2013. THE SAID ORDER OF THE LD.CIT(A) IS PLACED ON RECORD. IT IS SUBMITTED BY THE AR OF THE ASSESSEE THAT THE LEGAL HEIR OF THE ASSESSEE BEFORE THE LD.C IT(A) ALSO TRIED TO EXPLAIN THAT DIFFERENCE OF PEAK AS REMAINS TO BE E XPLAINED WAS OF RS.1,57,668/- CAN ALSO BE EXPLAINED FROM THE AVAILA BILITY OF CASH IN THE HAND OF WIFE OF THE ASSESSEE BUT THE LEGAL HEIR FAI RLY ACCEPTED BEFORE THE LD.CIT(A) THAT SINCE HER HUSBAND WAS EXPIRED. HEN CE, SHE IS NOT IN A POSITION TO COMMENTS ON THE DIFFERENCE. IT IS SUB MITTED THAT THE ASSESSEE HAS EXPIRED ON 23/01/2011 AND THERE WAS NO EARNING MEMBER LEFT IN HIS FAMILY. UNDER THESE FACTS, A LENIENT VIEW MAY BE A DOPTED. THE LEGAL HEIR OF THE ASSESSEE SMT.MANOKANTA SARAF HAS FILED ANOTH ER WRITTEN SUBMISSION DATED 20.3.2015. IT IS SUBMITTED THAT T HE LEGAL HEIR COULD NOT EXPLAIN THE SOURCE OF DEPOSIT OF RS.1,57,668/- IN T HE BANK ACCOUNT MAINTAINED IN THE NAME OF HUNNY SARAF AND VARNIK SA RAFT BEFORE THE CIT(A) DUE TO FACT THAT THE BANK ACCOUNTS WERE OPER ATED BY THE ASSESSEE (LATE SHRI RAJKUMAR SARAF) AND HIS LEGAL HEIR, WIFE OF THE ASSESSEE, WAS NOT AWARE THE DAILY AFFAIRS OF ASSESSEES BUSINESS ACTIVITY. IT IS SUBMITTED THAT DUE TO UNFORTUNATE DEATH OF ASSESSEE ON 23/01 /2011, ASSESSEES WIFE (SMT.MANOKANTA SARAF - LEGAL HEIR) WAS NOT IN A POS ITION TO EXPLAIN THE AMOUNT OF RS.1,57,668/-. IT IS FURTHER SUBMITTED THAT THIS SUM COULD ALSO BE EXPLAINED. ITA NO.2384/AHD /2011 SMT. MANOKANTA SARAF VS. ITO ASST.YEAR 2007-08 - 4 - 3.1. ON THE CONTRARY, LD.SR.DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS NOT DISPUTED THAT THE LD.CIT(A) HAS REDUCED T HE ADDITION TO RS.1,57,668/- (OUT OF ADDITION OF RS.6,52,992 - RS.4,95,324). LOOKING TO THE TOTALITY OF THE FACTS OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT THE AUTHORITIES BELOW WERE NOT JUSTIFIED IN LEVYING THE PENALTY. THEREFORE, WE HEREBY DIRECT THE ASSESSING OFFICER TO DELETE TH E PENALTY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 10 TH DAY OF APRIL, 2015 AT AHMEDABAD. SD/- SD/- ( .. ) ( ) ( N.S. SAINI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 10/ 04 /2015 2*..,(.../ T.C. NAIR, SR. PS ITA NO.2384/AHD /2011 SMT. MANOKANTA SARAF VS. ITO ASST.YEAR 2007-08 - 5 - !'#$%&' &$ / COPY OF THE ORDER FORWARDED TO : 1. # / THE APPELLANT 2. $% # / THE RESPONDENT. 3. 345 6 / CONCERNED CIT 4. 6 ( ) / THE CIT(A)-II, SURAT 5. 7(8$45 , *45. , 3 / DR, ITAT, AHMEDABAD 6. 8:;<) / GUARD FILE. ! / BY ORDER, %7$ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 24.3.15(DICTATION-PAD 7- PA GES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..25.3.15 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.10.4.15 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10.4.15 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER