Shri Amit J.Patel, Baroda V. The Income Tax Officer,Ward-2(4), Baroda

ITA 2557/AHD/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9790 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2000-2001
• Appeal Filed On: 16-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Unexplained investment

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD - , , BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER 1. ./ I.T.A. NO.2557/AHD/2014 2. ./ I.T.A. NO.2558/AHD/2014 3. ./ I.T.A. NO.2559/AHD/2014 ( / AYS : 2000-01, 2001-02 & 2002-03 RESPECTIVELY) SHRI AMIT J.PATEL 29, KRISHNAKUNJ SOCIETY JETALPUR ROAD BARODA 391 140 / VS. THE ITO, WARD-2(4) BARODA $ ./ ./ PAN/GIR NO. : AFWPP 3570 K ( $' / APPELLANT ) .. ( ()$' / RESPONDENT ) $' * / APPELLANT BY : MS.URVASHI SHODHAN, AR ()$' + * / RESPONDENT BY : SHRI DINESH SINGH, SR.DR ,- + . / DATE OF HEARING 14/12/2015 /0 + . / DATE OF PRONOUNCEMENT 08/01/2016 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS BUNCH OF THREE PENALTY APPEALS BY THE ASSES SEE IS DIRECTED AGAINST THE COMMON ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-II, BARODA [CIT(A) IN SHORT] DATED 26/06/2014 PERTAINING TO ASSESSMENT YEARS (AYS) 2000-01, 2001-02 & 2002-0 3. SINCE THE COMMON GROUNDS HAVE BEEN RAISED IN ALL THESE APPEAL S, THESE WERE HEARD ITA NOS.2557,2558 N 2559 /AHD/2014 SHRI AMIT J.PATEL VS. ITO ASST.YEARS 2000-01, 2001-02 N 2002-03 RESPECTIVEL Y - 2 - TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLID ATED ORDER FOR THE SAKE OF CONVENIENCE. THE ASSESSEE HAS RAISED THE FOLLOWI NG COMMON GROUNDS OF APPEAL:- 1. LD.CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING PENALTY LEVIED BY AO OF RS.2,71,800/- (FOR AY 2000-01), RS.2,35,17 0 (FOR AY 2001-02) AND RS.13,984 (FOR AY 2002-03) ON ADDITION MADE U/S.69C OF THE ACT ON UNEXPLAINED INVESTMENT IN LAN D. LD.CIT(A) OUGHT TO HAVE DELETED PENALTY LEVIED SINCE APPELLAN T SUBMITTED DETAILED EXPLANATION REGARDING SOURCE OF INVESTMENT IN LAND WITH CORROBORATIVE EVIDENCE. IT BE SO HELD NOW. 2. LD.CIT() ERRED IN LAW AND ON FACTS IN NOT APPRECIAT ING THE FACT THAT THE APPELLANT EARNED SUFFICIENT AGRICULTURAL INCOME YEAR AFTER YEAR FROM HUGE FAMILY LAND HOLDING ALSO ACCEPTED BY AO I N THE ASSESSMENT PROCEEDINGS WITHOUT ANY MODIFICATION. L D.CIT(A) OUGHT TO HAVE DELETED PENALTY LEVIED WHEN SOURCE OF INVESTMENTS IN FULLY EXPLAINED. IT BE SO HELD NOW. 3. LD.CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING P ENALTY LEVIED SIMPLY ON THE BASIS OF ADDITION CONFIRMED IN QUANTU M PROCEEDINGS MADE UNDER DEEMING FICTION IGNORING EXPLANATION OF THE APPELLANT EXPLAINING SOURCE OF INVESTMENT IN PURCHASE OF LAND . LD.CIT(A) OUGHT TO HAVE QUASHED PENALTY ORDER AS THE APPELLAN T NEITHER CONCEALED INCOME NOR FURNISHED INACCURATE PARTICULA RS OF INCOME. IT BE SO HELD NOW. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER, ED IT, DELETE, MODIFY OR CHANGE ALL OR ANY OF THE GROUNDS OF APPEAL AT TH E TIME OF OR BEFORE THE HEARING OF THE APPEAL. 2. FIRST, WE TAKE UP THE ASSESSEES APPEAL IN ITA NO.2557/AHD/2014 FOR AY 2000-01 AS A LEAD CASE. BRIEFLY STATED FAC TS OF THE CASE ARE THAT THE ASSESSEE HAS FILED HIS RETURN OF INCOME FOR AY 2000-01 ON 12/06/2007 DECLARING NIL TOTAL INCOME AND NET AGRIC ULTURAL INCOME OF RS.2,50,000/-. THEREAFTER, A NOTICE U/S.142(1) AND 143(2) OF THE INCOME ITA NOS.2557,2558 N 2559 /AHD/2014 SHRI AMIT J.PATEL VS. ITO ASST.YEARS 2000-01, 2001-02 N 2002-03 RESPECTIVEL Y - 3 - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) DATED 29/08/2007 WAS ISSUED AND SERVED UPON THE ASSESSEE FIXING THE DATE OF HEARING ON 14/09/2007. THEREAFTER, THE ASSESSING OFFICER (AO IN SHORT) FRAMED AN ASSESSMENT U/S.144 R.W.S.147 OF THE INCOME TAX ACT, 1961 VIDE ORDER DATED 08/11/2007, THEREBY THE ASSESSING OFFICER (AO IN SHORT) MADE ADDITION OF RS.7,10,000/- U/S.69 OF THE ACT BEING U NEXPLAINED INVESTMENT IN PLOT OF LAND AND ALSO INITIATED PENALTY PROCEEDI NGS ON THIS ADDITION. SUBSEQUENTLY, AO PASSED ORDER U/S.271(1)(C) OF THE ACT BY LEVYING A PENALTY OF RS.2,17,800/- VIDE ORDER DATED 20/03/201 3. THE ASSESSEE BEING AGGRIEVED BY THE PENALTY ORDER, PREFERRED AN APPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE DISMISSED THE APPEAL(S). AGGRIEVED BY THE ORDER OF THE LD.CIT(A), NOW THE ASSESSEE IS FURTHER IN APPEAL(S) BEFORE US. 3. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE S UBMITTED THAT, IN QUANTUM APPEAL, THE ADDITION ON WHICH THE IMPUGNED PENALTY HAS BEEN LEVIED HAS ALREADY BEEN DELETED BY THE COORDINATE B ENCH (ITAT A BENCH AHMEDABAD) IN ITA NOS.448, 449 & 450/AHD/2012 PERTAINING TO AYS 2000-01, 2001-02 & 2002-03 VIDE ORDER DATED 30/ 04/2015 AND A COPY OF THE SAID TRIBUNALS ORDER IS PLACED ON RECO RD. HE SUBMITTED THAT, THEREFORE THE PENALTY DOES NOT SURVIVE IN ALL THESE THREE ASSESSMENT YEARS UNDER APPEALS. 3.1. ON THE CONTRARY, THE LD.SR.DR SUPPORTED THE OR DER OF THE LD.CIT(A). ITA NOS.2557,2558 N 2559 /AHD/2014 SHRI AMIT J.PATEL VS. ITO ASST.YEARS 2000-01, 2001-02 N 2002-03 RESPECTIVEL Y - 4 - 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE COORDINATE BENCH IN ASSESSEES OWN CASES IN QUANTUM APPEALS ON WHICH PENALTY WAS LEVIED HAS BEEN DELETE D IN ITA NOS.448,449 & 450/AHD/2012 FOR AYS 2000-01, 2001-02 & 2002-03 AND ALLOWED THE APPEALS. THIS FACT HAS NOT BEEN CONTROVERTED BY THE REVENUE BY PLACING ANY CONTRARY MATERIAL ON RECORD. THEREFORE, WE SET ASIDE THE ORDER OF THE LD.CIT(A) AND THE AO IS HERE BY DIRECTED TO DELETE THE PENALTY IN ALL THE THREE ASSESSMENT YEARS UNDER APPEALS. ACCORDINGLY, ALL THE THREE APPEALS OF THE ASSESSEE ARE ALLOWED. 5. IN THE RESULT, ALL THE THREE APPEALS OF THE ASSE SSEE ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 8 TH DAY OF JANUARY, 2016 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( MANISH BORAD ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 08/ 01 /2016 4..., ,.../ T.C. NAIR, SR. PS ITA NOS.2557,2558 N 2559 /AHD/2014 SHRI AMIT J.PATEL VS. ITO ASST.YEARS 2000-01, 2001-02 N 2002-03 RESPECTIVEL Y - 5 - !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ()$' / THE RESPONDENT. 3. 56 7 / CONCERNED CIT 4. 7 ( ) / THE CIT(A)-II, BARODA 5. 8,9 (56 , . 560 , / DR, ITAT, AHMEDABAD 6. 9;< =- / GUARD FILE. / BY ORDER, )8 ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 17.12.15 (DICTATION-PAD 1- PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..17.12.15 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.8.1.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8.1.16 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