SHRI SHARAD KABRA, Indore V. THE ACIT 1(2), Indore

ITA 285/IND/2014

• Counselvise Citation: 28522714 RSA 2014
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-02-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 21-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE
• Keywords: Loose papers; Documents seized
• Section: 143(3); 142(1)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER AND SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NOS. 285 TO 290/IND/2014 A.Y. 2003-04 TO 2008-09 SHRI SHARAD KABRA INDORE PAN AGWPK 4627K ::: APPELLANT VS ASSTT. COMMISSIONER OF INCOME TAX 1(2) INDORE ::: RESPONDENT ITA NOS. 291TO 297/IND/2014 A.Y. 2003-04 TO 2009-10 SHRI VIJAY CHOUDHARY INDORE PAN ABNPC7872L ::: APPELLANT VS ASSTT. COMMISSIONER OF INCOME TAX 1(2) INDORE ::: RESPONDENT 2 ITA NOS. 298 TO 304/IND/2014 A.Y. 2003-04 TO 2009-10 SMT. MANJIRI CHOUDHARY INDORE PAN ABNPC7873M ::: APPELLANT VS ASSTT. COMMISSIONER OF INCOME TAX 1(2) INDORE ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 14.5.2015 DATE OF PRONOUNCDEMENT 1 4 .5.2015 O R D E R PER BENCH THESE THREE ASSESSES HAVE FILED THESE APPEALS AND THEY ARE INDIVIDUALS. THESE CASES ARE OF ZOOM GROUP OF CASES WHERE SEARCH WAS CONDUCTED AND NOTICES U/S 153C OF THE ACT WERE ISSUED. THE ASSESSING OFFICER ISSUED NOTIC ES ALONG 3 WITH QUESTIONNAIRE U/S 142(1) TO ASSESSES OF THIS GROU P ASKING FOR NECESSARY DETAILS. IN THIS GROUP CASES, FIVE COMPANIES AND THREE INDIVIDUALS WERE INVOLVED. THESE PERSONS COULD NOT COMPLY WITH INITIAL NOTICES ISSUED ON ACCOUNT OF VOLUMINOUS DETAILS ASKED FOR. 2. THE ASSESSING OFFICER HAS LEVIED PENALTY U/S 271(1)(B) OF THE ACT IN SEVEN ASSESSMENT YEARS IN TH E CASE OF VIJAY CHOUDHARY AND SMT. MANJRI CHOPUDHARY AND IN SIX YEARS IN THE CASE OF SHARAD KABRA FOR NON-COMPLIANCE WITH NOTICES ISSUED U/S 142(1) OF THE ACT. THE PEN ALTIES U/S 271(1((B) WERE ALSO LEVIED IN THE CASES OF FIVE GROUP COMPANIES. HOWEVER, THE CIT(A) DELETED THE PENALTIES IN CASES OF COMPANIES BY HOLDING THAT THE COMPANIES WERE HAVING COMPLEX ISSUES AND REQUIRE VOLUMINOUS SUBMISSIONS ON FACTS AS WELL AS LOOSE PAPERS. LD. CIT( A) ACCEPTED THESE AS GENUINE REASON FOR NON-COMPLIANCE AND DELETED PENALTY. THE CIT(A), HOWEVER, SUSTAINED THE P ENALTY 4 IN THE CASES OF INDIVIDUAL ASSESSES AND NOW THEY ARE IN APPEAL BEFORE US. 3. AFTER HEARING BOTH THE SIDES, WE HOLD THAT ONCE UN DER SIMILAR FACTS AND CIRCUMSTANCES, THE CIT(A) HAS DELETED THE PENALTY IN THE GROUP COMPANY CASES THEN HE IS NOT JUST IFIED IN SUSTAINING THE PENALTIES IN THE INDIVIDUAL CASES. IN GROUP CASES WHEN SEARCH TAKES PLACE, THE LOOSE PAPERS AND OTHER DOCUMENTS SEIZED NEED CLOSE SCRUTINY FOR SUBM ISSION OF REPLIES TO THE TAX AUTHORITIES. HENCE, THE INDIV IDUAL CASES ALSO BECOME COMPLEX IN TERMS OF COMPLIANCE TO TH E NOTICES ISSUED U/S 142(1) OF THE ACT ALONG WITH QUESTIONNAIRE. FURTHER WE ALSO NOTE THAT IN ALL THESE CAS ES THE ASSESSEES HAVE ULTIMATELY COMPLIED WITH THE REQUIREMENTS OF THE NOTICES AND SUBMITTED NECESSARY DETAILS AS REQUIRED BY THE ASSESSING OFFICER. THE ASSESSMENTS HAVE BEEN COMPLETED U/S 143(3) OF THE ACT . THE RECORD ALSO SHOWS THAT THERE WAS NO CUMULATIVE 5 ATTEMPT ON THE PART OF THE ASSESSES FOR NON-COOPERATION OR NEGLIGENCE IN THE ASSESSMENT PROCEEDINGS. KEEPING AL L THESE FACTS IN VIEW, WE DELETE THE PENALTIES IN ALL TH ESE CASES FOR ALL THE ASSESSMENT YEARS UNDER APPEAL. 4. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEES ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 14 TH MAY, 2015. SD/- SD/- (D.T. GARASIA) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER MAY 14 TH , 2015 DN/-