Smt P Bhagyalakshmi, Visakhapatnam V. The ACIT, Circle-4(1), Visakhapatnam

ITA 254/VIZ/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7209 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 27-10-2010
• Assessment Year: 1994-1995
• Appeal Filed On: 16-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Assessee Lawyers: P RAMAKRISHNA
• Section: 68

Judgement Text

ITA NO 254 OF 2010 P BHAGYALAKSHMI VISAKHAPATNAM PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.254/VIZAG/2010 ASSESSMENT YEAR:1994-95 SMT. P. BHAGYALAKSHMI, VISAKHAPATNAM VS. ACIT, CIRCLE-4(1) VISAKHAPATNAM (APPELLANT) PAN NO: AATPP 2593 G (RESPONDENT) APPELLANT BY: SHRI P. RAMA KRISHNA, CA RESPONDENT BY: SHRI D.S. SUNDER SINGH, DR ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 18.01.2010 PASSED BY LEARNED CIT(A), VISAKHAPATNAM AND IT RELATES TO THE ASSESSMENT YEAR 1994-95. 2. THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF TH E ACT, HAVING BEEN PARTIALLY CONFIRMED BY THE LEARNED CIT (A), THE ASS ESSEE IS IN APPEAL BEFORE US ASSAILING HER DECISION. 3. THE FACTS RELATING TO THE ISSUE ARE STATED IN BR IEF. IN THE QUANTUM ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER ADDED THE CASH CREDITS AGGREGATING TO RS.4,10,000/- UNDER SECTION 68 OF TH E ACT. THE ASSESSEE CHALLENGED THE SAID ADDITION IN APPEAL. DURING THE PENDANCY OF APPEAL, THE ASSESSING OFFICER LEVIED A PENALTY OF RS.1,25,000/- UNDER SECTION 271(1)(C) ON THE ABOVE SAID ADDITION. IN THE APPEAL FILED BE FORE THE TRIBUNAL, THE ITAT VISAKHAPATNAM SUSTAINED ADDITION ONLY TO THE E XTENT OF RS.1,60,000/-. THE ASSESSEE ALSO CHALLENGED THE LEVY OF PENALTY IN APPEAL FILED BEFORE ITA NO 254 OF 2010 P BHAGYALAKSHMI VISAKHAPATNAM PAGE 2 OF 3 LEARNED CIT(A). IN VIEW OF THE ORDER OF THE TRIBUN AL SUSTAINING THE ADDITION TO THE EXTENT OF RS.1,60,000/-, THE LEARNED CIT (A) DIRECTED THE ASSESSING OFFICER TO RESTRICT THE PENALTY WHICH IS RELATABLE TO THE AMOUNT OF RS.1,60,000/-. AGGRIEVED BY THE ORDER OF THE LEARNE D CIT (A), THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULL Y PERUSED THE RECORD. WE NOTICE THAT THE LEARNED CIT(A) HAS PLACE D RELIANCE ON THE FOLLOWING CASE LAW. A) A.C.I.T VS. MC LEOD RUSSEL INDIA LTD (101 ITD 39 (CAL)) B) CEMENT DISTRIBUTORS P LTD VS. CIT (60 ITR 586 ( MAD)) C) ADDL. CIT VS. SMT. CHANDRAKANTA (205 ITR 607 ( MP) D) R.B.SHREE RAM DURGAPRASAD N FATECHAND NARIHAS (168 ITR 619) AS PER THE DISCUSSIONS MADE BY LEARNED CIT(A), WE N OTICE THAT THE DECISIONS RENDERED IN THE ABOVE CITED CASES RELATE TO THE ADDITIONS MADE ON ESTIMATE AND HENCE, IN OUR VIEW, THEY ARE NOT APPLI CABLE TO THE FACTS OF THE INSTANT CASE. THE ADDITION IN THE INSTANT CASE PER TAINS TO CASH CREDITS ADDED UNDER SECTION 68 OF THE ACT. FROM THE ORDER OF THE LEARNED CIT (A), WE NOTICE THAT THE ASSESSEE HAS FILED CONFIRMATION LETTERS OBTAINED FROM THE CREDITORS IN SUPPORT OF THE SAID CASH CREDITS. THE ITAT HAS CONFIRMED THE ADDITION ONLY TO THE EXTENT THE CONFIRMATION LETTER S WAS NOT FOUND TO BE SATISFACTORY. THUS IT IS NOT A CASE, WHERE THE ASSE SSEE HAS ALTOGETHER FAILED TO DISCHARGE HER RESPONSIBILITY. ON THE OTHER HAND , IT IS SEEN THAT THE ASSESSEE HAS FURNISHED ALL THE DETAILS THAT WERE AV AILABLE WITH HER. HENCE, IN OUR VIEW, UNDER THE FACTS OF THE INSTANT CASE, T HE CASH CREDITS ADDITION MADE WOULD NOT FALL UNDER BOTH THE CATEGORIES OF CO NCEALMENT OF PARTICULARS OF INCOME AND THE FURNISHING OF INACCURATE PARTICUL ARS OF INCOME. ACCORDINGLY, WE DO NOT FIND MERIT IN LEVYING PENALT Y ON THE SAID ADDITION. ACCORDINGLY, WE SET ASIDE THE ORDER OF LEARNED CIT( A) AND DIRECT THE ITA NO 254 OF 2010 P BHAGYALAKSHMI VISAKHAPATNAM PAGE 3 OF 3 ASSESSING OFFICER TO DELETE THE PENALTY THAT WAS CO NFIRMED BY LEARNED CIT(A). 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED. PRONOUNCED IN THE OPEN COURT ON 17-02-2011 SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE: 17 TH FEBRUARY, 2011 COPY TO 1 SMT. P. BHAGYALAKSHMI, PBL TRANSPORT CORPORATION, 47-10-13 1 ST FLOOR, REDNAM PLAZA, 2 ND ROAD, DWARAKANAGAR, VISAKHAPATNAM 2 THE ACIT, CIRCLE-4(1) VISAKHAPATNAM 3 4. THE CIT (CENTRAL), HYDERABAD THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM