Avadh Cotton Industries, Kadi V. The Income Tax Officer, Patan Ward-5, Old Wrad-4, Mehsana

ITA 2984/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1765 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 25-04-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 23-10-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA K. YADAV, JUDICIAL MEMBER ./ ITA NO. 2984/AHD/2015 / ASSESSMENT YEAR: 2011-12 AVADH COTTON INDUSTRIES, THOL ROAD, RANGPURDA, KADI - 382715 .. APPELLANT PAN : AAFFA 7451 G VS INCOME TAX OFFICER, PATAN WARD-5, MEHSANA .. RESPONDENT ASSESSEE(S) BY : SHRI PRITESH SHAH, AR REVENUE BY : SHRI MUKESH SHARMA, SR. DR. / DATE OF HEARING 25/04/2016 /DATE OF PRONOUNCEMENT 29/04/2016 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), GANDHINAGAR, AHMEDABAD DATED 29.07.2015 FOR ASSESSM ENT YEAR 2011-12. 2. THE SOLE GROUND RAISED BY THE ASSESSEE READS AS UNDER::- THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CON FIRMING THE PENALTY UNDER SECTION 271(1)(C) OF THE INCOME-T AX ACT, 1961, ON DISALLOWANCE OF KASAR VATAV EXPENSES OF RS.10,14,000/- AND ON ADDITION OF CASH DEPOSIT OF RS.9,072/-, WHICH IS REQUESTED TO BE DELETED. 3. THE ASSESSING OFFICER LEVIED PENALTY OF RS.3,16, 640/-U/S 271(1)(C) OF THE ACT VIDE ORDER DATED 14.08.2014 ON FOLLOWING (SMC) ITA NO. 2984/AHD2015 AVADH COTTON INDUSTRIESVS. ITO AY 2011-12 2 ADDITION/DISALLOWANCE MADE IN THE ASSESSMENT ORDER U/S 143(3) OF THE ACT ON 11.02.2014. I. DISALLOWANCE OF KASAR/VATAV EXPENSES RS.10,14,000 /- II. ADDITION ON ACCOUNT OF INTEREST INCOME- RS. 1 ,652/- III. ADDITION ON ACCOUNT OF CASH DEPOSIT - RS. 9,072/- IN THE UNDISCLOSED BANK ACCOUNT 3.1 AGGRIEVED BY THE AFORESAID PENALTY ORDER OF THE ASSESSING OFFICER, THE ASSESSEE WENT IN APPEAL BEFORE THE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, PARTLY ALLOWED THE ASSESSEES APPEAL BY DELETING THE PENAL TY LEVIED ON INTEREST INCOME OF RS.1,652/-; WHEREAS HE CONFIRMED THE PENALTY LEVIED BY ASSESSING OFFICER ON ACCOUNT OF D ISALLOWANCE OF KESAR/VATAV EXPENSES (RS.10,14,000) AND ADDITIO N ON ACCOUNT OF CASH DEPOSIT (RS.9,072), BY OBSERVING AS UNDER:- I HAVE CONSIDERED FACTS OF THE CASE AND ARGUMENT O F THE APPELLANT. THE RATIO OF DECISION RELIED UPON BY TH E APPELLANT IS REGARDING FAILURE ON THE PART OF AO IN RECORDING SATISFACTION U/S 271(1)(C) OF THE ACT., I .E., WHEN THE AO HAS NOT SPECIFIED WHETHER THE SAME IS FOR CONCEALMENT OR FOR FURNISHING OF PARTICULARS OF INC OME. HOWEVER, IN THE PRESENT CASE THE AO HAS USED THE WO RD AND I.E. PENALTY IS LEVIED FOR BOTH THE DEFAULT A ND ACCORDINGLY THIS GROUND OF APPEAL OF THE APPELLANT IS NOT JUSTIFIED. THE APPEAL IS DECIDED ON THE MERITS OF T HE CASE AND ACCORDINGLY THIS PLEA OF APPELLANT ON VALIDITY OF PENALTY ORDER IS ALSO REJECTED. CONSIDERING ALL TH ESE FACTS, PENALTY U/S 271(1)(C) LEVIED BY AO ON DISALLOWANCE OF KESAR & VATAV EXPENSES FOR RS.10,14,000/- AND ADDIT ION OF RS.9,072/- ON ACCOUNT OF CASH DEPOSIT IS CONFIRM ED WHEREAS PENALTY LEVIED ON INTEREST INCOME OF RS.165 2/- IS DELETED. (SMC) ITA NO. 2984/AHD2015 AVADH COTTON INDUSTRIESVS. ITO AY 2011-12 3 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL PLACED ON RECORD. WE FIND THAT, BEFORE TH E LOWER AUTHORITIES, THE ASSESSEE HAS NOT FURNISHED ANY DET AILS OF EXPENDITURE IN RESPECT OF WHICH ADDITION IS MADE AN D ANY SATISFACTORY EXPLANATION TO JUSTIFY ITS CLAIM OF EX PENDITURE. IT IS PERTINENT TO NOTE THAT, EVEN WHEN THE ASSESSING OFF ICER CONFRONTED THE ASSESSEE TO EXPLAIN ITS CLAIM DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT COULD NOT PROVIDE ANY DETAILS/SATISFACTORY EXPLANATION TO JUSTIFY ITS CLA IM. THE ASSESSEE HAS ALSO FAILED TO GIVE SATISFACTORY EXPLA NATION BEFORE THE CIT(A) AND EVEN BEFORE US ALSO, THE ASSESSEE HA S NOT SUBSTANTIATED ITS CLAIM BY PLACING ANY EVIDENCE/MAT ERIAL ON RECORD. THEREFORE, AFTER TAKING INTO CONSIDERATION ALL THE FACTS AND CIRCUMSTANCES OF THE CASE, I AM NOT INCLINED TO INTERFERE WITH THE ORDER OF THE CIT(A), WHO HAS RIGHTLY UPHEL D THE PENALTY LEVIED BY ASSESSING OFFICER, AS THE ASSESSEE HAS NO T GIVEN ANY DETAILS BEFORE THE LOWER AUTHORITIES AS WELL AS BEF ORE THE TRIBUNAL. IN SUCH CIRCUMSTANCES, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 29 TH , APRIL, 2016 AT AHMEDABAD. SD/- ( SHAILENDRA K. YADAV ) JUDICIAL MEMBER AHMEDABAD; DATED29/04/2016 BIJU T., PS (SMC) ITA NO. 2984/AHD2015 AVADH COTTON INDUSTRIESVS. ITO AY 2011-12 4 / 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 / ( DY./ASSTT.REGISTRAR) !', / ITAT, AHMEDABAD