Shri Sagar Dhirajlal Sanghvi, Ahmedabad V. The ITO, Ward-5(2)(4)., Ahmedabad

ITA 2838/AHD/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8501 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 20-01-2020
• Assessment Year: 2011-2012
• Appeal Filed On: 13-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: DHRUNAL Y BHATT
• Keywords: Unexplained investment
• Section: 143(3); 153A; 69; 132

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, HONBLE JUDICIAL MEMBER AND SHRI WASEEM AHMED HONBLE ACCOUNTANT MEMBER ITA.NO.2838/AHD/2017 / ASSTT.YEAR : 2011-12 SAGAR DHIRAJLAL SANGHVI A/13, THIRTHBHOOMI APARTMENT NR.LAW GARDEN, ELLISBRIDGE AHEMDABAD 380 006. PAN : BTAPS 0001 H VS ITO, WARD - 5(2)(4) AHMEDABAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI DHRUNAL Y. BHATT, AR REVENUE BY : SHRI L.P. JAIN, SR.DR / DATE OF HEARING : 20/01/2020 / DATE OF PRONOUNCEMENT: 21/01/2020 !'/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF LD.CIT(A)-5, AHMEDABAD DATED 11.9.2017 PASSED FOR THE ASSESSMENT YEAR 2011-12. 2. SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT THE L D.CIT(A) HAS ERRED IN CONFIRMING PENALTY OF RS.2.50 LAKHS WHICH WAS IMPOS ED BY THE AO UNDER SECTION 271AAA OF THE INCOME TAX ACT, 1961. ITA NO.2838/AHD/2017 2 3. BRIEF FACTS OF THE CASE ARE THAT A SEARCH UNDER SECTION 132 OF THE INCOME TAX ACT, 1961 WAS CARRIED OUT IN SANGHVI GROUP OF C ASES ON 9.3.2011. SUBSEQUENTLY, THE ASSESSEE FILED RETURN OF INCOME U NDER SECTION 153A OF THE ACT ON 1.2.2012 DECLARING TOTAL INCOME OF RS.13,86, 570/-. IN AN ASSESSMENT FRAMED UNDER SECTION 143(3) R.W.S. 153B(1)(B) OF TH E ACT, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED AT RS.41,43,100/- AFTER MAKING VARIOUS ADDITIONS INCLUDING ADDITION OF RS.25.00 LAKHS UNDER SECTION 69 ON ACCOUNT OF UNEXPLAINED INVESTMENT. THIS ADDITION WAS CONFIRM ED BY THE LD.CIT(A). THEREAFTER, THE LD.AO INITIATED PENALTY PROCEEDINGS UNDER SECTION 271AAA OF THE ACT QUA ADDITION OF RS.25.00 LAKHS MADE UNDER SECTION 69 A ND IMPOSED PENALTY OF RS.2,50,000/-, WHICH WAS CONFIRMED BY TH E LD.CIT(A). THE ASSESSEE IS NOW BEFORE THE TRIBUNAL AGAINST IMPOSIT ION OF PENALTY. 4. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE IMPUGNED ADDITION OF RS.25.00 LAKHS HAS BEEN DELETED BY THE TRIBUNAL IN THE QUANTUM APPEAL IN IT(SS)A.NO.44/AHD/2015. THE TRIBUNAL VIDE ORDER DA TED 17.12.2019 DELETED THE ADDITION, AND THEREFORE, THERE IS NO SCOPE FOR IMPOSITION OF PENALTY UNDER SECTION 271AAA OF THE ACT BY THE REVENUE AUTHORITIE S. ON THE OTHER HAND, THE LD.DR COULD NOT DISPUTE THIS FACTUAL POSITION O F THE CASE. 5 WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, WE HAVE GONE THROUGH THE RECORD CAREFULLY. IT EMERGES OUT FROM THE RECORD T HAT ADDITION OF RS.25 LAKHS WAS MADE BY THE AO ON THE GROUND THAT THE ASSESSEE HAS MADE UNEXPLAINED INVESTMENT IN PURCHASE OF A BUNGALOW. THIS ADDITIO N STANDS DELETED AT THE END OF THE TRIBUNAL ON THE GROUND THAT HIS FATHER SHRI DHIRAJLAL V. SANGHI MADE A DISCLOSURE E OF RS.10.66 CRORES AND THIS AMOUNT OF RS.25 LAKHS FORMED PART OF THAT TOTAL DISCLOSURE. THEREFORE, ADDITION ON WHIC H THE IMPUGNED PENALTY HAS BEEN IMPOSED HAVING BEEN EXTINGUISHED, IMPUGNED PEN ALTY DOES NOT SURVIVE. ITA NO.2838/AHD/2017 3 WE CANCEL THE IMPUGNED PENALTY IMPOSED UNDER SECTIO N 271AAA OF THE ACT, AND ALLOW THE GROUND OF APPEAL. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 21 ST JANUARY, 2020 AT AHMEDABAD. SD/- SD/- (WASEEM AHMED ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER