Shri Chetan Dhirubhai Patel, Surat V. The Income tax Officer,Ward-6(1), Surat

ITA 2720/AHD/2012

• Counselvise Citation: 272020514 RSA 2012
• Duration Of Justice: 1 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-12-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 04-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DK MISHR A

Judgement Text

, , , , SMC, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, SMC BENCH . .. . . .. . , ! ! ! ! BEFORE SHRI G.C. GUPTA, VICE-PRESIDENT ITA NO.2720/AHD/2012 [ASSTT.YEAR : 2006-2007] SHRI CHETAN DHIRUBHAI PATEL 399, DABHI STREET MOTA VARACHHA SURAT 395 007. PAN : ALBPP 8762 E /VS. ITO, WARD-6(1) SURAT. ( (( (#$ #$ #$ #$ / APPELLANT) ( (( (%&#$ %&#$ %&#$ %&#$ / RESPONDENT) '() * + !/ ASSESSEE BY : WRITTEN SUBMISSIONS -. * + !/ REVENUE BY : SHRI D.K. MISHRA, SR.DR ./ * )01/ DATE OF HEARING : 12 TH DECEMBER, 2013 234 * )01/ DATE OF PRONOUNCEMENT : 10-01-2014 !5 / O R D E R THIS APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2006-2007 IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-I, SURAT D ATED 25.10.2012. 2. AT THE TIME OF HEARING NONE APPEARED ON BEHALF O F THE ASSESSEE- APPELLANT. HOWEVER, THE ASSESSEE HAS FILED WRITTEN SUBMISSIONS BEFORE THE TRIBUNAL WITH A REQUEST TO DECIDE THE APPEAL ON THE BASIS OF THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE. ACCORDINGLY, TH E APPEAL OF THE ASSESSEE IS BEING DECIDED EX PARTE QUA THE ASSESSEE-APPELLANT ON MERITS ITA NO.2720/AHD/2012 AFTER HEARING THE LEARNED DR AND AFTER CONSIDERING WRITTEN SUBMISSIONS FILED BY THE ASSESSEE. 3. THE ASSESSEES ONLY GROUND OF APPEAL IS AS UNDER : 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE PENA LTY OF RS.28,149/- LEVIED U/S.271(1)(C) OF THE ACT MAY BE CANCELLED, DELETED OR SUBSTANTIALLY REDUCED. 4. THE ASSESSEE HAS SUBMITTED IN ITS WRITTEN SUBMIS SIONS THAT THE ASSESSEE HAS PRODUCED PAN AND CONFIRMATIONS OF EIGH T PARTIES WHO HAVE DEPOSITED ` 19,500/- EACH TOTALING TO ` 1,56,000/- WITH THE ASSESSEE. THE ASSESSEE HAS CONTENDED THAT INITIAL BURDEN PLACED O N THE ASSESSEE HAS BEEN DISCHARGED BY THE ASSESSEE BY PRODUCING PAN AND CON FIRMATION OF THE CREDITOR PARTIES. THE AO HAS NOT BROUGHT ANY MATER IAL TO DISPROVE THE EVIDENCE PRODUCED BY THE ASSESSEE. THE ASSESSEE CO NTENDED THAT MERELY BECAUSE IN QUANTUM APPEAL, THE ISSUE OF ADDITION WA S DECIDED AGAINST THE ASSESSEE, IS NO GROUND TO LEVY PENALTY ON THE ASSES SEE. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE ASSESSEE. HE SU BMITTED THAT IN THE QUANTUM APPEAL OF THE ASSESSEE THE ADDITION MADE HA S BEEN CONFIRMED BY THE TRIBUNAL FOR WANT OF ADEQUATE EVIDENCE. HE REF ERRED TO PARA 8.1 OF THE CIT(A)S ORDER IN SUPPORT OF THE CASE OF THE REVENU E WHEREIN HELD THAT MERE CONFIRMATION IS NOT ENOUGH AND THE ASSESSEE SH OULD HAVE PROVED THE CREDIT-WORTHINESS OF THE LENDERS AND GENUINENESS OF THE TRANSACTIONS. HE RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 5. I HAVE CONSIDERED SUBMISSIONS OF THE LEARNED DR AND PERUSED THE ORDERS OF THE AO AND THE CIT(A) AND ALSO THE WRITTE N SUBMISSIONS FILED BY THE ASSESSEE. I FIND THAT THE ASSESSEE HAS CRED ITED A SUM OF ` 19,500/- EACH IN THE ACCOUNTS OF EIGHT PARTIES TOTALING TO ` 1,56,000/- AND THE ASSESSEE HAS FILED COMPLETE ADDRESS AND PAN NUMBER OF CREDITORS ALONG ITA NO.2720/AHD/2012 WITH THEIR CONFIRMATION, BUT THE AO DID NOT ISSUE S UMMONS TO THE CREDITORS. I FIND THAT MERELY BECAUSE THE EVIDENCE FILED BY THE ASSESSEE WAS NOT FOUND SUFFICIENT BY THE TRIBUNAL WHILE UPHO LDING THE ADDITION MADE IN THE QUANTUM CASE OF THE ASSESSEE, IT CANNOT BE SAID THAT THE PENALTY LEVIED U/S.271(1)(C) OF THE ACT HAS TO BE C ONFIRMED. THIS IS A CASE WHERE THE ASSESSEE HAS FILED AN EXPLANATION ALONG W ITH PAN AND CONFIRMATIONS OF ALL EIGHT PARTIES, AND THE AO CHOO SE NOT TO ISSUE SUMMONS TO THE SAID CREDITOR PARTIES. IN THESE FAC TS, I HOLD THAT MATERIAL BROUGHT ON RECORDS DOES NOT ESTABLISH THE CHARGE OF CONCEALMENT OF INCOME OR FILING OF INACCURATE PARTICULARS ON THE P ART OF THE ASSESSEE, AND ACCORDINGLY, THE PENALTY LEVIED OF ` 28,149/- IS CANCELLED AND THE GROUND OF THE APPEAL OF THE ASSESSEE IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- ( . .. . . .. . /G.C. GUPTA) /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD