ACIT, New Delhi V. Sh. Gautam Khattar, Noida

ITA 2968/DEL/2013

• Counselvise Citation: 296820114 RSA 2013
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 27-03-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 13-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SHRI R. S. SYAL, ACCOUNTANT MEMBER AND SHRI RAJ PAL YADAV, JUDICIAL MEMBER I.T.A .NO.-2968/DEL/2013 (ASSESSMENT YEAR-2007-08) ACIT VS. SHRI GAUTAM KHATTAR CIRCLE-42(1), H. NO. E-16, SECTOR-40 NEW DELHI. NOIDA (U.P.) PAN: AJFPK7923C (APPELLANT) (RESPONDENT) REVENUE BY:- SH. SATPAL SINGH, SR. DR. ASSESSEE BY:- NONE ORDER PER R. S. SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT (A) ON 22.02.2013 DELETING THE PENALTY IMPO SED U/S 271(1)(C) OF THE ACT, IN RELATION TO THE ASSESSMEN T YEAR 2007-08. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE WAS EMPLOYED WITH M/S GE-CAPITAL INTERNATIONAL SERVICES AND THEREAFTER SHIFTED TO WORK WITH M/S SAMSUNG INDIA E LECTRONICS PVT. LTD. HE FILED ITS RETURN DECLARING TOTAL INCOME OF 12,40,920/-. THE I.T.A .NO.-2968/DEL/2013 2 AO MADE THE FOLLOWING ADDITIONS IN THE ASSESSMENT C OMPLETED U/S 143(3) : - DISALLOWANCE OF HRA 1,96,625/- - INTEREST INCOME 1,060/- - REIMBURSEMENT ADDED BACK 59,258/- - UNEXPLAINED DEPOSIT 56,514/- - TOTAL 3,13,457/- THE ASSESSEE DID NOT CHALLENGE THE ADDITIONS AND AC CEPTED THE ASSESSMENT TO BUY PEACE OF MIND. THEREAFTER, THE AO IMPOSED PENALTY IN RESPECT OF THE ABOVE DISALLOWANCES/ADDIT IONS @ 300% OF THE TAX SOUGHT TO BE EVADED. THIS RESULTED INTO THE IMPOSITION OF PENALTY AMOUNTING TO RS.3,16,530/-. THE LD. CIT (A) DELETED THIS PENALTY. 3. WE HAVE HEARD THE LD. DR AND PERUSED THE RELEVAN T MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF THE ASSESSEE DESPITE NOTICE. AS SUCH, WE ARE PROCEEDING TO DISP OSE OF THE APPEAL EX PARTE QUA THE ASSESSEE ON MERITS. I.T.A .NO.-2968/DEL/2013 3 4. FIRST ADDITION IS TOWARDS DISALLOWANCE OF HRA. T HE ASSESSEE HIMSELF FILED A LETTER DATED 30.11.2009 SURRENDERIN G HRA EXEMPTION WHICH FACT IS BORNE OUT FROM THE ASSESSME NT ORDER ITSELF. 5. THE NEXT ADDITION IS OF RS.1060 ON ACCOUNT OF IN TEREST INCOME. THE ASSESSEE DECLARED INTEREST INCOME OF RS .3,79,229/- IN HIS RETURN. HOWEVER, A SMALL SUM OF RS.1060 WAS ERR ONEOUSLY IGNORED WHILE COMPUTING THE TOTAL INTEREST INCOME. 6. THE NEXT ADDITION IS OF RS.59,258/- ON ACCOUNT O F REIMBURSEMENT OF CLAIM FROM M/S GE CAPITAL WHERE TH E ASSESSEE WAS EMPLOYED AS A PERSONNEL MANAGER. THE MONEY SPEN T THROUGH HIS CREDIT CARD WAS REIMBURSEMENT BY THE COMPANY. S INCE THE ASSESSEE CHANGED HIS JOB FROM M/S GE CAPITAL INTERN ATIONAL SERVICES TO M/S SAMSUNG INDIA, HE WAS UNABLE TO PRO DUCE REIMBURSEMENT CERTIFICATE FROM HIS FORMER EMPLOYER. 7. THE NEXT ADDITION IS TOWARDS UNEXPLAINED DEPOSIT OF RS.56,514/-. THE TWO TRANSACTIONS OF RS.14,914/- AN D RS.41,600/- TOTALING RS.56,514/- WERE THE ENTRIES OF CREDIT IN THE ASSESSEES BANK ACCOUNT WHICH REPRESENTED REIMBURSEMENT FROM T HE COMPANY. I.T.A .NO.-2968/DEL/2013 4 8. THE ABOVE DESCRIPTION OF THE NATURE OF ADDITIO NS MADE BY THE AO AMPLY PROVES THAT THE ASSESSEE EITHER COMMITTED A BONA FIDE MISTAKE IN NOT OFFERING THE CORRECT INCOME OR WAS H ANDICAPPED TO ADDUCE NECESSARY EVIDENCE BECAUSE OF THE CHANGE OF HIS EMPLOYER. IN OUR CONSIDERED OPINION NO EXCEPTION CAN BE TAKEN TO THE VIEW TAKEN BY THE LD. CIT(A) IN DELETING THE IMPUGNED PE NALTY, WHICH CAME TO BE IMPOSED BY THE AO AT EXORBITANT 300% OF THE AMOUNT OF TAX SOUGHT TO BE EVADED. WE THEREFORE, UPHOLD TH E IMPUGNED ORDER. 9. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/03/2014. SD/- SD/- ( RAJ PAL YADAV ) (R. S. SYAL) JUDICIAL MEMBER ACCOUNTANT ME MBER DATED: 31/03/2014 *AK VERMA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT I.T.A .NO.-2968/DEL/2013 5 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTR DATE INITIAL 1. DRAFT DICTATED ON 27/03/2014 PS 2. DRAFT PLACED BEFORE AUTHOR 27/03/2014 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 31/03/2014 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 31/03/2014 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. *