Shri Umesh K.Shah L/h. od Late Kantilal K.Shah, Ahmedabad V. The Income tax Officer,Ward-10(2), Ahmedabad

ITA 2748/AHD/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1884 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 05-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEETA SHAH
• Assessee Lawyers: KIRITKUMAR C THAKKAR
• Keywords: Salary income; Wrong claim; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE DR. O. K. NARAYANAN, VP AND SHRI BHAVNESH S AINI, JM) ITA NOS.2748/AHD/2009 A. Y.: 2005-06 LATE SHRI KANTILAL C. SHAH, L/H SHRI UMESH K. SHAH, 27, SUVAS COLONY, ST. XAVIOURS SCHOOL ROAD, NAVRANGPURA, AHMEDABAD PA NO.ACZPS 4201 N VS THE INCOME TAX OFFICER, WARD 10(2), AHMEDABAD (APPELLANT) (RESPONDENT) APPELLANT BY SHRI KIRITKUMAR C. THAKKAR, AR RESPONDENT BY SMT. NEETA SHAH, DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-XVI, AHMEDABAD DATE D 13-08-2009 FOR THE ASSESSMENT YEAR 2005-06, CHALLENGING THE LEVY OF PE NALTY OF RS.26,984/- U/S 271 (1) (C) OF THE INCOME TAX ACT. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES, PERUSED THE FINDINGS OF AUTHORITIES BELOW. THE ASSESSEE FILED RETURN OF INCOME AT RS.1,01,320/-. THE AO NOTICED THAT THE AS SESSEE DID NOT SHOW SALARY OF RS.1,50,000/- IN THE COMPUTATION OF INCOME THOUG H IT WAS CREDITED IN THE INCOME AND EXPENDITURE ACCOUNT. THE ASSESSEE I N RESPONSE TO THE SHOW CAUSE NOTICE ISSUED BY THE AO SUBMITTED THAT T HE SAID INCOME WAS SHOWN IN THE INCOME AND EXPENDITURE ACCOUNT FILED W ITH THE RETURN OF ITA NOS.2748/AHD/2009 LATE SHRI KANTILAL SHAH, L/H SHRI UMESH K.SHAH 2 INCOME BUT INADVERTENTLY THE SAME COULD NOT BE SHOW N WHILE PREPARING THE COMPUTATION OF TOTAL INCOME. THE ASSESSEE STATE D THAT THE SAME MAY BE ADDED TO THE RETURN OF INCOME. THE AO AFTER ALL OWING STANDARD DEDUCTION OF RS.30,000/-MADE THE ADDITION OF RS.1,2 0,000/-. ON THE AFORESAID MATTER, PENALTY WAS IMPOSED AGAINST THE A SSESSEE. 3. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE AR E OF THE VIEW THAT PENALTY IS UNJUSTIFIED IN THE MATTER. THE ASSESSEE ADMITTEDLY HAS SHOWN SALARY INCOME IN THE PROFIT & LOSS ACCOUNT FILED WI TH THE RETURN OF INCOME. THE AO ON GOING THROUGH THE PROFIT & LOSS ACCOUNT N OTED THAT THE SALARY INCOME IS OMITTED TO BE SHOWN IN THE COMPUTATION OF INCOME. THE ASSESSEE CLAIMED THAT IT IS A MISTAKE IN COMPUTING THE TOTAL INCOME. THESE FACTS, THEREFORE, SHOW THAT THE ASSESSEE HAS DISCLOSED ALL RELEVANT FACTS IN THE RETURN OF INCOME BUT IT WAS BONA FIDE MISTAKE IN NOT SHOWING THE SALARY INCOME IN THE COMPUTATION OF INCOME. THI S FACT IS ALSO STRENGTHENED BY THE FACT THAT DESPITE THE ASSESSEE WAS ENTITLED FOR STANDARD DEDUCTION WAS ALSO NOT SHOWN BONA FIDE IN THE COMPUTATION OF INCOME. IT IS, THEREFORE, NOT A CASE OF MAKING ANY WRONG CLAIM OR FILING INACCURATE PARTICULARS IN THE COMPUTATION OF INCOME . IT APPEARS TO BE A BONA FIDE MISTAKE IN NOT TAKING THE NET SALARY FIGU RE IN THE COMPUTATION OF INCOME. THE ASSESSEE REALIZING THE INADVERTENT M ISTAKE IN THE COMPUTATION OF INCOME AGREED TO SURRENDER THE SAME TO BE ADDED AS INCOME OF THE ASSESSEE. CONSIDERING THE FACTS AND C IRCUMSTANCES NOTED ABOVE, WE ARE OF THE OPINING THAT IT IS NOT A CASE OF FILING INACCURATE PARTICULARS OR CONCEALING PARTICULARS OF INCOME AS REGARDS SALARY. WE, THEREFORE, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND CANCEL THE LEVY OF PENALTY U/S 271 (1) ( C ) OF THE INCOME TAX ACT. ITA NOS.2748/AHD/2009 LATE SHRI KANTILAL SHAH, L/H SHRI UMESH K.SHAH 3 4. AS A RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 10-12-2009 SD/- SD/- (DR. O. K. NARAYANAN) VICE PRESIDENT (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 10 -12-2009 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD