Deepali Shashank Tanksale, Dhule V. Income-tax Officer ,

ITA 2546/PUN/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4001 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 07-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E BEFORE SHRI R.S. SYAL, VP AND SHRI VIKAS AWASTHY, JM / ITA NOS. 2544 TO 2546/PUN/2016 / ASSESSMENT YEARS : 2005-06 TO 2007-08 SMT. DEEPALI SHASHANK TANKSALE, C/O. A.N. DESHPANDE, ADVOCATE, 1 ST FLOOR, GARUD LIBRARY SHOPPING COMPLEX, P.B. NO.72, DHULE-424 001 PAN : ACJPT7659P .... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD-3(1), DHULE. / RESPONDENT ASSESSEE BY : (WRITTEN SUBMISSIONS) REVENUE BY : SHRI SUDHENDU DAS / DATE OF HEARING : 01.11.2018 / DATE OF PRONOUNCEMENT : 01.11.2018 / ORDER PER VIKAS AWASTHY, JM THESE THREE APPEALS BY THE ASSESSEE ARE DIRECTED AGA INST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL)-1, NASHIK DATED 19.08.20 16 COMMON FOR THE ASSESSMENT YEARS 2005-06, 2006-07 AND 2007-08 CONFIRMING LEVY OF PENALTY U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAF TER REFERRED TO AS THE ACT). 2 ITA NOS. 2544 TO 2546/PUN/2016 A.YS.2005-06 TO 2007-08 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER , THE ASSESSEE HAS FILED WRITTEN SUBMISSIONS AND THE SAME ARE REPRODUCED HEREIN BELOW: WRITTEN SUBMISSIONS IN THE APPEALS RELATING TO THE PENALTY U/S. 271(1)(C) LEVIED BY A.O. AND CONFIRMED BY CIT-A-1, NASHIK THIS MAY PLEASE YOUR HONOUR 1. THE AFORESAID CAPTIONED THREE APPEALS BY THE ASSESS EE ARE DIRECTED AGAINST THE CONSOLIDATED ORDER OF THE COMMISSIONER OF INCOME TAX APPEAL-1, NASHIK DATED-19/08/2016 FOR THE ASSESSMEN T YEARS 2005- 06 TO 2007-08, CONFIRMING THE PENALTIES LEVIED U/S. 271(1)(C). 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE APPELLAN T IS AN INDIVIDUAL. SHE HAD OBTAINED THE LOAN OF RS.25 LACS FROM INDIR A MAHILA SAHAKARI BANK LTD. DHULE BY MORTGAGING A RESIDENTIAL HOUSE A T PLOT NO.37,S.NO.37/1,SATSANG COLONY, DEOPUR ,DHULE, IN 2 002. OUT OF THIS LOAN AMOUNT RECEIVED, SHE HAD GIVEN A LOAN OF RS.23 ,17,000/- TO HER HUSBAND BY CHEQUES DURING HIS LIFE TIME. HER HUSBAN D HAD RETURNED THE PART OF THE LOAN DURING HIS LIFE TIME UP TO THE DATE OF 25/01/2004.0N 25/01/2004 HER HUSBAND EXPIRED IN ACC IDENT. THE APPELLANT HAD DEPOSITED THE CASH IN THE SAID BANK L OAN ACCOUNT OUT OF THE AMOUNT OF LOAN RETURNED BY HER HUSBAND TO HERSE LF. THE ASSESSEE HAD KEPT THE CASH WITH HERSELF AFTER THE DEATH OF H ER HUSBAND AS A SECURITY AND FOR INCURRING THE HOUSEHOLD EXPENSES. HOWEVER, ON RECEIPT OF THE NOTICES FROM THE BANK AUTHORITIES, S HE DEPOSITED INTO THE SAID LOAN ACCOUNT AN AMOUNT OF RS.21,00,000/- AS UN DER :---- SR. NO. PERIOD AMOUNT RS. 1 01/04/2004 TO 31/03/2005 5,00,000/- 2 01/04/2005 TO 31/03/2006 10,00,000/- 3 01/04/2006 TO 31/03/2007 6,00,000/- 3. THE A.O. HAD TAXED THIS AMOUNT OF RS.21 LACS IN THE ASSESSEE'S HANDS AS UNEXPLAINED INVESTMENT, UNDER THE PREMISE THAT T HE ASSESSEE COULD NOT BE SAID TO POSSESS THIS AMOUNT WITH HERSE LF AFTER THE DEATH OF HER HUSBAND ON 25/01/2004. 4. AGAINST THESE ADDITIONS MADE U/S. 143(3), THE APPEL LANT HAD FILED THE APPEAL TO THE C.I.T. APPEALS-1 NASIK, WHO CONFIRMED THE ADDITIONS. THE ASSESSEE WENT IN FURTHER APPEAL TO THE ITAT, PU NE BENCH. THE ITAT PUNE BENCH A',PUNE VIDE ITS ORDER DATED 09/11 /2016, HAS DELETED THESE ADDITIONS. THE COPY OF THE ITAT ORDER IS ENCLOSED HEREWITH.[ITA NOS.819 TO 821/PN/2014] 5. THE HON'BLE ITAT PUNE BENCH HAS STATED IN THE SAID ORDER :- 'CONSIDERING THE TOTALITY OF THE AFORESAID FACTS AN D IN THE PECULIAR FACTS OF THE CASE, WE ARE OF THE VIEW THAT IN THE A BSENCE OF ANY MATERIAL ON RECORD TO DEMONSTRATE THAT THE CONTENTI ONS OF THE ASSESSEE ARE WRONG, NO ADDITION IS CALLED FOR IN TH E PRESENT CASE. WE THEREFORE DIRECT ITS DELETION. THUS THIS GROUND OF THE ASSESSEE IS ALLOWED.' 6. NOW, IT IS HUMBLY SUBMITTED THAT, AS THE ADDITIONS MADE ON ACCOUNT OF THE UNEXPLAINED DEPOSITS HAVE BEEN DELETED FOR T HREE ASSESSMENT YEARS BY THE ITAT , THE PENALTIES LEVIED FOR THESE THREE YEARS ARE ALSO REQUIRED TO BE FULLY DELETED. 3 ITA NOS. 2544 TO 2546/PUN/2016 A.YS.2005-06 TO 2007-08 7. THE DETAILS OF THE PENALTIES LEVIED U/S 271[1][C] B Y THE A.O. AND CONFIRMED BY THE C.I.T. APPEALS-1, NASIK ARE AS UND ER :- SR. NO. ASSESSMENT YEAR PENALTIES LEVIED U/S.271(1)(C) 1 2005-06 1,41,780/- 2 2006-07 3,22,014/- 3 2007-08 1,70,340/- 8. KINDLY THEREFORE, CANCEL THE PENALTIES LEVIED AND O BLIGE. 3. SHRI SUDHENDU DAS REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT ADDITION ON WHICH PENALTY U/S.271(1)(C) OF THE ACT HAS BEEN LE VIED, HAS BEEN DELETED BY THE TRIBUNAL. 4. WE HAVE HEARD THE SUBMISSIONS MADE BY THE LD. DR A ND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. PENALTY U/S.271(1)(C) OF THE A CT WAS LEVIED IN RESPECT OF ADDITION U/S. 69 MADE ON ACCOUNT OF UNEXPLAINED DEPOSITS IN LOAN ACCOUNT. THE MATTER TRAVELLED TO THE TRIBUNAL. THE TRIBUNA L IN APPEAL BY THE ASSESSEE IN ITA NOS.819 TO 821/PUN/2014 FOR THE ASSES SMENT YEARS 2005-06 TO 2007-08 DECIDED ON 09.11.2016 DELETED THE ADDITION. SINC E, THE SUBSTRATUM FOR LEVY OF PENALTY HAS ERODED; PENALTY ARISING THEREFROM DOES NOT SURVIVE. ACCORDINGLY, IMPUGNED ORDER IS SET ASIDE AND THE APPEALS OF THE ASSESSEE FOR THREE ASSESSMENT YEARS ARE ALLOWED. 5. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED ON THURSDAY, THE 1 ST DAY OF NOVEMBER, 2018. SD/- SD/- R. S. SYAL VIKAS AWASTHY VICE-PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 1 ST NOVEMBER, 2018 SB 4 ITA NOS. 2544 TO 2546/PUN/2016 A.YS.2005-06 TO 2007-08 !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-1, NASHIK. 4. THE PR. CIT-1, NASHIK. 5. '#$ %%&' , ( &' , )*+ , / DR, ITAT, B BENCH, PUNE. 6. $,- ./ / GUARD FILE. // TRUE COPY // (0 / BY ORDER, %1 &+ / PRIVATE SECRETARY ( &' , / ITAT, PUNE.