The ITO, Ward-1(3), RAJKOT-GUJARAT V. Rajhans Education Trust, RAJKOT-GUJARAT

ITA 264/RJT/2014

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6879 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 16-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND N SOTAKKE
• Assessee Lawyers: MJ RANPURA
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [ CONDUCTED THROUGH E-COURT AT AHMEDABAD ] , !'# $,%!& BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER #./ I.T.A. NO.264/RJT/2014 ( / ASSESSMENT YEAR : 2004-05) THE INCOME TAX OFFICER WARD-1(3) RAJKOT / VS. RAJHANS EDUCATION TRUST C/O.INDRANIL RAJGURU SANJAY VATIKA NR.UNIVERSITY GATE RAJKOT !* # ./ # ./ PAN/GIR NO. : AAATR 2608 B ( *, / APPELLANT ) .. ( -*, / RESPONDENT ) *,. / APPELLANT BY : SHRI ARVIND N.SOTAKKE, SR.DR -*,/. / RESPONDENT BY : SHRI M.J. RANPURA, AR 01/2 / DATE OF HEARING 03/10/2017 34 /2 / DATE OF PRONOUNCEMENT 09 / 10 /2017 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL IS FILED AT THE INSTAN CE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS )-JAMNAGAR, [CIT(A) IN SHORT] DATED 24/01/2014 FOR THE ASSESSMENT YEAR (AY) 2004-05. ITA NO.264 /RJT /2014 ITO VS. RAJHANS EDUCATION TRUST ASST.YEAR 2004-05 - 2 - 2. IN THE CAPTIONED APPEAL, THE ASSESSING OFFICER (AO) HAS ASSAILED THE ACTION OF THE CIT(A) IN DELETING PENALTY OF RS. 21,75,790/- LEVIED BY THE AO UNDER S.271(1)(C) FOR THE AY 2004-05. 3. BRIEFLY STATED, THE ASSESSEE-TRUST FILED ITS RE TURN OF INCOME WHICH WAS SUBJECTED TO SCRUTINY ASSESSMENT. IN THE COURS E OF SCRUTINY ASSESSMENT, IT WAS NOTICED BY THE AO THAT ASSESSEE- TRUST HAS TAKEN UNSECURED LOAN AGGREGATING TO RS.59,46,000/-, THE NATURE OF SOURCE OF WHICH WAS NOT FOUND SATISFACTORY. THE AO ACCORDING LY INVOKED SECTION 68 OF THE ACT AND MADE ADDITION TOWARDS UNEXPLAINED CASH CREDIT FOR THE AFORESAID AMOUNT. PENALTY ON THE AFORESAID ALLEGED UNEXPLAINED CREDIT UNDER S.271(1)(C) OF THE ACT WAS ALSO IMPOSED VIDE ORDER DATED 29/03/2011. THE CIT(A) DELETED THE PENALTY QUANTIF IED AT RS.21,75,790/- ON THE UNEXPLAINED CREDITS IN THE APPEAL BEFORE HIM VIDE ITS ORDER DATED 24/01/2014. THE AO HAS PREFERRED APPEAL AGAINST TH E AFORESAID ORDER OF THE CIT(A) IN PENALTY PROCEEDINGS. 4. BEFORE US, THE LD.AR FOR THE ASSESSEE IN THE CAP TIONED APPEAL OF THE REVENUE SUBMITTED AT THE OUTSET THAT THE QUANTU M PROCEEDINGS HAVE BEEN DECIDED IN FAVOUR OF ASSESSEE BOTH BY THE CIT( A) VIDE ITS ORDER DATED 7/10/2009 AS WELL AS BY THE INCOME TAX APPELL ATE TRIBUNAL IN ITA NO.27/RJT/2010 ORDER DATED 02/02/2011. ITA NO.264 /RJT /2014 ITO VS. RAJHANS EDUCATION TRUST ASST.YEAR 2004-05 - 3 - 5. THE LD.DR, ON THE OTHER HAND, RELIED UPON THE OR DER OF THE AO IN QUANTUM PROCEEDINGS AND PENALTY PROCEEDINGS. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS PO INTED OUT ON BEHALF OF THE ASSESSEE, THE QUANTUM ADDITIONS DO NO T SURVIVE. THEREFORE, VERY BASIS FOR IMPOSITION OF PENALTY CEASES TO EXIS T. AS A CONSEQUENCE, WE DO NOT SEE ANY MERIT IN THE APPEAL OF THE REVENU E. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. THIS ORDER PRONOUNCED IN OPEN COURT ON 09 / 1 0 /201 7 SD/- SD/- ($) ( ) %! ! ( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 09/ 10 /2017 ..0,.%0../ T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. *, / THE APPELLANT 2. -*, / THE RESPONDENT. 3. #8# 2 92 / CONCERNED CIT 4. 92 ( ) / THE CIT(A)-JAMNAGAR 5. ;<=%2%0 , , /DR,ITAT,RAJKOT 6. =H1 / GUARD FILE. / BY ORDER, -;2%2 //TRUE COPY// / ( DY./ASSTT.REGISTRAR) %&, / ITAT, RAJKOT