M/s. Sushil Traders, Ahmedabad V. The Income Tax Officer.Ward-3(4), Ahmedabad

ITA 2915/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8292 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 03-11-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: P M MEHTA
• Keywords: Business income

Judgement Text

, SMC/D IN THE INCOME TAX APPELLATE TRIBUNAL SMC/D BENCH, AHMEDABAD BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA NO. 2915/AHD/2014 / ASSESSMENT YEAR: 2007-08 M/S. SUSHIL TRADERS, SHOP NO. 211-S.F. 2 ND FLOOR, THE GRAND MALL, OPP. C.N. VIDHYALAY, AMBAWADI, AHMEDABAD-380 015 VS. INCOME-TAX OFFICER, WARD-3(4), AHMEDABAD [ / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI P.M. MEHTA, AR REVENUE BY : SHRI V.K. SINGH, SR DR / DATE OF HEARING : 26/10/2017 / DATE OF PRONOUNCEMENT: 31/10/2017 / O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER: THIS APPEAL OF ASSESSEE FOR ASSESSMENT YEAR 2007-08 IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-II, AHMEDABAD DATED 24.09.2 014 VIDE APPEAL NO.CIT(A)-II/WARD-3(4)/299/13-14, ARISING OUT OF OR DER UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT), FRAMED ON 22.03.2012 BY THE ITO, WARD-3(4), AHMEDAB AD. 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS AGAINS T THE ORDER OF THE LD. CIT(A) IN CONFIRMING THE PENALTY IMPOSED UNDER SECT ION 271(1)(C) OF THE ACT BY THE LD. ASSESSING OFFICER AT RS.2,89,045/- ON THE A DDITION OF RS.8,59,636/-. 3. BRIEFLY STATED FACTS, AS CULLED OUT FROM THE REC ORD, ARE THAT THE ASSESSEE IS A FIRM ENGAGED IN THE BUSINESS OF IMPORTER AND SUPPLI ER OF SCIENTIFIC & LABORATORY INSTRUMENTS, LAB-WARE CHEMICALS & TEXTILES SPARE-PA RTS. ITS RETURN OF INCOME WAS FILED ON 17.10.2007 DECLARING TOTAL INCOME AT RS.93 ,340/- CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND NOTICES U NDER SECTION 143(2)/142(1) ITA NO. 2915/AHD/2014 SUSHIL TRADERAS VS. ITO AY : 2007-08 - 2 ALONG WITH QUESTIONNAIRE WERE ISSUED AND SERVED UPO N ASSESSEE. NECESSARY DETAILS, AS CALLED FOR, WERE SUBMITTED DURING THE C OURSE OF ASSESSMENT PROCEEDINGS; HOWEVER, THE ASSESSEE HAS SHOWN LESS S ALES/PAYMENTS RECEIVED FROM VARIOUS PARTIES AS COMPARED TO THE SAME IN THE BOOKS OF ACCOUNT AND THE ASSESSEE WAS UNABLE TO RECONCILE ITS CLAIM. THE AS SESSING OFFICER ALSO OBSERVED THAT SALES MADE TO SOME PARTIES AMOUNTING TO RS.8,5 9,636/- WERE NOT RECORDED IN ITS REGULAR BOOKS OF ACCOUNTS; THEREFORE, THE AS SESSING OFFICER ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF U NRECORDED SALES. PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT WERE ALSO INITIATED FOR FURNISHING INACCURATE PARTICULARS OF INCOME/CONCEALING PARTICU LARS OF INCOME. SUBSEQUENTLY, THE ASSESSING OFFICER VIDE HIS ORDER DATED 22.03.2012 IMPOSED PENALTY OF RS.2,89,045/- BEING THE 100% OF THE TAX SOUGHT TO BE EVADED UNDER SECTION 271(1)(C) OF THE ACT. 4. AGGRIEVED BY THE AFORESAID PENALTY ORDER, THE AS SESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A) WHO, AFTER CONSIDERING THE SU BMISSIONS OF THE ASSESSEE, CONFIRMED THE PENALTY IMPOSED BY THE ASSESSING OFFI CER. 5. FURTHER AGGRIEVED, THE ASSESSEE IS NOW IN APPEAL BEFORE US. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS FILED APPEAL AGAINST THE QUANTUM ADDITION BEFORE THE TRIB UNAL AND THE CO-ORDINATE BENCH OF THIS TRIBUNAL VIDE ORDER DATED 12.12.2014 PARTLY ALLOWED THE APPEAL OF THE ASSESSEE BY DELETING THE AMOUNT OF RS.7,73,636/ - OUT OF TOTAL ADDITION OF RS.8,59,636/- MADE BY THE ASSESSING OFFICER. IN OTH ER WORDS, THE TRIBUNAL HAS CONFIRMED THE ADDITION OF RS.86,000/- ONLY BY ESTIM ATING THE INCOME FROM THE UNRECORDED SALES OF THE ASSESSEE AT 10%. HE, THEREF ORE, PLEADED THAT THE ASSESSEE IS LIABLE TO PAY THE PENALTY ON THE CONFIRMED ADDIT ION ONLY. 7. LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. ITA NO. 2915/AHD/2014 SUSHIL TRADERAS VS. ITO AY : 2007-08 - 3 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD PLACED BEFORE US. ASSESSEES SOLITARY GRIEVANCE IS AGAINS T THE ORDER OF THE LD. CIT(A) IN CONFIRMING THE PENALTY UNDER SECTION 271(1)(C) OF T HE ACT AT RS.2,89,045/-. WE OBSERVE THAT, IN THE QUANTUM PROCEEDINGS, THE CO-OR DINATE BENCH OF THIS TRIBUNAL IN ITA NO.583/AHD/2011 VIDE ORDER DATED 12 .12.2014 HAS DELETED AN AMOUNT OF RS.7,73,636/- OUT OF TOTAL ADDITION OF RS .8,59,636/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNRECORDED SALES. IT IS NOT DISPUTED THAT THE ADDITION WAS MADE FOR THE UNACCOUNTED SALES. IT IS ALSO UNDISPUTED FACT THAT THE IMPUGNED SALES WERE NOT DISCLOSED BY THE ASSESSEE I N ITS REGULAR BOOKS OF ACCOUNTS. THE LEARNED ASSESSING OFFICER HAS MADE T HE ADDITION FOR THE TOTAL SALES AND THE TRIBUNAL SUSTAINED THIS ADDITION ONLY TO THE EXTENT OF 10% OF THE IMPUGNED SALES. WE THUS OBSERVE THAT IT IS A CLEAR CASE OF FURNISHING OF INACCURATE PARTICULARS OF INCOME BY WAY OF NOT FURN ISHING CORRECT SALES IN THE BOOKS OF ACCOUNTS AND THEREFORE THE ASSESSEE IS LIA BLE TO PAY THE PENALTY ON THE CONFIRMED ADDITION OF RS.86,000/-. WE ORDER ACCORD INGLY. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS P ARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 31 ST OCTOBER 2017 AT AHMEDABAD. SD/- SD/- ( S.S. GODARA ) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER AHMEDABAD; DATED, 31/10/2017 BIJU T., SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ) ( / THE CIT(A)- 5. , , /DR,ITAT, AHMEDABAD, 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT.REGISTRAR) ITAT, AHMEDABAD