Sh. Prem Lakhotia, New Delhi V. ITO, New Delhi

ITA 2703/DEL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97500 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 09-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 02-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMAN KANT GARG
• Assessee Lawyers: ALOK PERIWAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-2, NEW DELHI BEFORE SH. J.SUDHAKAR REDDY, AM ITA NO. 2703/DEL./2014 : ASSTT. YEAR : 2009-10 PREM LAKHOTIA R-22, NEHRU ENCLAVE NEW DELHI VS ITO WARD -22(1) NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AADPL3864A APPELLANT BY : SH. AL OK PERIWAL, C.A. RESPONDENT BY : SH. RAMAN K ANT GARG, SR. DR DATE OF HEARING : 09.09.2015 DATE OF PRONOUNCEMENT : 07.10.2015 ORDER PER J.S. REDDY, A.M. THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 25.02.2014 OF THE LD. CIT(A)-XXIII, NEW DELHI. 2. THE FACTS BROUGHT OUT AT PARA 2 OF LD. CIT(APPE ALS) ORDER PAGE 2 WHICH IS EXTRACT FOR THE REFERENCE :- 2. ASSESSMENT IN THIS CASE WAS COMPLETED U/S 143(3) OF THE ACT AND DURING THE COURSE OF ASSESSME NT PROCEEDINGS, ASSESSING OFFICER NOTED THAT ASSESSEE HAD DECLARED BUSINESS LOSS OF RS. 2,60,794/- AND SE T OFF THIS LOSS FROM INCOME SHOWN UNDER THE HEADS- CAPITAL GAINS OF RS. 23,270/- AND INCOME FROM HOUSE PROPERTY OF RS. 4,200/- AND CARRIED FORWARD THE REMAINING LOSS OF RS. 2,33,324/-. FURTHER, IT WAS NOTED BY THE ASSESSING OFFICER THAT ASSESSEE FAILED TO DISCLOSE THE RENTAL INCOME OF RS. 1,70,600/-RECEIVE D FROM SABS ARCHITECTS & ENGINEERS (P) LTD. WHICH WAS DULY FOUND REFLECTED IN THE AIR INFORMATION ITA NO.2703/DEL/2014 PREM LAKHOTIA 2 RELEVANT TO THE ASSESSEE. IN THIS RESPECT, IT WAS SUBMITTED BY THE ASSESSEE THAT RENTAL INCOME COULD NOT BE DISCLOSED DUE TO CLERICAL ERROR. 3. ON APPEAL THE FIRST APPELLATE AUTHORITY CONFIR MED THE ORDER OF THE ASSESSING OFFICER. FURTHER AGGRIEVED THE ASSESS EE IS IN APPEAL. 4. AFTER HEARING RIVAL CONTENTION, I AM OF THE C ONSIDERED OPINION THAT THE LEVY OF PENALTY IS NOT WARRANTED IN THIS C ASE AS THE EXPLANATION FURNISHED BY THE ASSESSEE IN MY OPINION IS BONA FIDE. THE CHARGE THAT THE ASSESSEE TRIED TO DE FRAUD THE REVENUE IS FALSE FOR THE REASON THAT, THE ASSESSEE HAS NEITHER REPOR TED THE RENTAL INCOME, NOR CLAIMED DEDUCTION FROM THE SAME OF INTE REST PAID ON LOAN NOR CLAIMED CREDIT OF TAX DEDUCTED AT SOURCE F ROM THIS INCOME. AT PAGE 22 OF THE PAPER BOOK, THE ASSESSEE HAS FILE D THE REVISED COMPETITION WHICH, DEMONSTRATES THAT EVEN AFTER CON SIDERING THE SAID INCOME ASSESSED TOTAL INCOME IS BELOW TAXABLE LIMIT. 5. UNDER THESE CIRCUMSTANCES, I DELETE THE PENALT Y LEVIED AND ALLOW THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWE D. (ORDER PRONOUNCED IN THE COURT ON 07/10/2015). SD/- (J.S.REDDY) ACCOUNTAN T MEMBER DATED: 07 /10/2015 *B.RUKHAIYAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITA NO.2703/DEL/2014 PREM LAKHOTIA 3 DATE INITIAL 1. DRAFT DICTATED ON 1.10.2015 2. DRAFT PLACED BEFORE AUTHOR 1.10.2015 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.