K.Chellammal, Komarapalayam V. ACIT, Salem

ITA 2961/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86336 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 08-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , ! . . ' , # $ BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER ./ ITA NO.2961/MDS/2014 # % !&% / ASSESSMENT YEAR : 2007-08 SMT. K. CHELLAMMAL, PROPX. M/S KANDAPPA TEXTILES, 19, HIGH SCHOOL ROAD, KOMARAPALAYAM 638 183. PAN : AATPC 1149 D V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, SALEM. (()/ APPELLANT) (+,()/ RESPONDENT) () - . / APPELLANT BY : NONE +,() - . / RESPONDENT BY : SHRI P. RADHAKRISHNAN, JCIT / ! - 0 / DATE OF HEARING : 26.02.2015 1& - 0 / DATE OF PRONOUNCEMENT : 04.03.2015 / O R D E R PER S.S. GODARA, JUDICIAL MEMBER: THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2007-0 8 ARISES FROM ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), SALEM, DATED 29.09.2014 PASSED IN ITA NO.42/2010-11 - - I.T.A. NO. 2961/MDS/2014 2 SUSTAINING PENALTY OF ` 35,802/-, IN PROCEEDINGS UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'TH E ACT'). 2. THE CASE HAS BEEN CALLED TWICE. NONE HAS COME PRESENT AT THE ASSESSEES BEHEST. THE REGISTRY HAD ALSO SE NT AN RPAD NOTICE ON 01.01.2015. THEREFORE, WE QUOTE THE CASE LAW OF CIT V. S. CHENNIAPPA MUDALIAR (1969) 74 ITR 41 (SC) AND PROCEED TO DEAL WITH THE APPEAL ON MERITS. 3. THE ASSESSEE IS AN INDIVIDUAL. SHE FILED HER RETURN OF INCOME ON 21.01.2008 DISCLOSING INCOME OF ` 5,23,300/-. THE SAME WAS SUMMARILY PROCESSED. THEREAFTER, THE AS SESSING OFFICER IN THE COURSE OF SCRUTINY, NOTICED THE AS SESSEE TO HAVE SHOWN A CREDIT BALANCE OF ` 1,17,000/- IN THE ACCOUNT OF M/S SRE DHANVIJAY TEXTILES PVT. LTD. THE ASSESSEE HAD FILED ALL THE PARTICULARS. THE ASSESSING OFFICER SOUGHT TO CONFI RM THE CREDIT BALANCE IN QUESTION FROM THE ABOVE STATED CREDITOR. THE SAME WAS NOT REFLECTED IN THOSE CREDIT BALANCE. THE ASS ESSEES REPRESENTATIVE APPEARS TO HAVE OFFERED THIS AMOUNT FOR ASSESSMENT. THE ASSESSING OFFICER ADDED THE CREDIT BALANCE OF ` 1,17,000/- IN A REGULAR ASSESSMENT FRAMED ON 11.12. 2009. HE - - I.T.A. NO. 2961/MDS/2014 3 ISSUED PENALTY NOTICE ALLEGING CONCEALMENT AND FURN ISHING OF INACCURATE PARTICULARS OF INCOME UNDER SECTION 271( 1)(C) OF THE ACT. THERE IS NO DISPUTE THAT THE ASSESSEE DID NOT PURSUE THE MATTER ANY FURTHER. 4. IN PENALTY PROCEEDINGS, THE ASSESSEE APPEARS TO HAVE GIVEN ALL PARTICULARS OF HER CREDITORS AND ONLY ONE OF THEM WAS STATED TO HAVE SHOWN LESSER CREDIT THAN HER BOOKS B EYOND HER CONTROL. ALL THIS FAILED TO CONVINCE THE ASSESSING OFFICER. HE TREATED THE AFORESAID DIFFERENTIAL CREDIT BALANCE A S AN INSTANCE OF CONCEALMENT AND FURNISHING OF INACCURATE PARTICULAR S OF INCOME AND IMPOSED IMPUGNED PENALTY OF ` 35,802/-. 5. THE ASSESSEE PREFERRED AN APPEAL. THE CIT(APPEA LS) HAS DISMISSED THE APPEAL FOR NON-PROSECUTION AFTER HAVING ADJOURNED THE CASE ON NUMEROUS OCCASIONS. 6. WE HAVE HEARD THE REVENUE AND GONE THROUGH THE RELEVANT FINDINGS. THE FACTUAL BACKDROP OF THE CAS E ALREADY STANDS NARRATED HEREINABOVE. WE FIND FROM THE PENA LTY ORDER THAT THERE WAS DIFFERENCE IN CREDIT BALANCE OF ` 1,17,000/-. THE ASSESSEES CATEGORIC STAND WAS THAT THE SAME HAD CR OPPED UP - - I.T.A. NO. 2961/MDS/2014 4 ONLY IN CASE OF ONE CREDITOR BEYOND HER CONTROL. T HE PENALTY ORDER NOWHERE DISPUTES OR DEALS WITH THIS FACT SPEC IFICALLY. IN THESE CIRCUMSTANCES, WE HOLD THAT A MEAGRE DIFFEREN CE IN CREDIT BALANCE WITH JUSTIFIABLE EXPLANATION HEREINABOVE DO ES NOT AMOUNT TO AN INSTANCE OF CONCEALMENT OR FURNISHING OF INACCURATE PARTICULARS OF INCOME. WE REITERATE TRITE PROPOSIT ION OF LAW THAT EACH AND EVERY DISALLOWANCE / ADDITION DOES NOT ATT RACT SECTION 271(1)(C) PENALTY. ACCORDINGLY, WE HOLD THAT THE I MPUGNED PENALTY OF ` 35,802/-, LEVIED IN THE ASSESSEES CASE HAS TO BE DELETED. 7. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED ON WEDNESDAY, THE 4 TH OF MARCH, 2015 AT CHENNAI. SD/ SD/- (A. MOHAN ALANKAMONY) (S.S. GODARA) ( . ) ( . . ') / ACCOUNTANT MEMBER # /JUDICIAL MEMBER /CHENNAI, 3 /DATED, THE 4 TH MARCH, 2015. KRI. - - I.T.A. NO. 2961/MDS/2014 5 4 - +#056 76&0 /COPY TO: 1. () /APPELLANT 2. +,() /RESPONDENT 3. / 80 () /CIT(A), SALEM 4. / 80 /CIT, CENTRAL-III, CHENNAI 5. 6!9' +#0# /DR 6. ':% ; /GF.