ACIT, Varanasi V. M/s Ganga Fules (P) Ltd., Chandauli

ITA 30/ALLD/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1258 (ITAT-ALLAHABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 28-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH ALLAHABAD BEFORE SHRI P.K. BANSAL , ACCOUNTANT MEMBER I TA NO. 30 /ALLD/ 20 1 4 ASSESSMENT YEAR: 2009 - 10 ACIT, CIRCLE - 3, V S. M/S. GANGA FUELS PVT. LTD. VARANASI B.P. 299 RAVI NAGAR, MUGALSARAI CHANDAULI UTTAR PRADESH. PAN: AABCG 7096C (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI A.K. PANDEY , DR. DATE OF HEARING: 2 7 .08.201 5 ORDER PER : P.K. BANSAL ACCOUNTANT MEMBER THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) - VARANASI DATED 12.11.2013 BY TAKING THE FOLLOWING EFFECT IVE GROUND OF APPEAL. 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A) IS JUSTIFIED IN DELETING PENALTY IMPOSED U/S.271(I)(C) FOR THE SUM OF RS.3,91,100/ - BY THE ASSESSING OFFICER IGNORING THE FACTS THAT LONG TERM CAPITAL GAINS DEEMED TO ARISE ON SALE OF LAND HAS NOT BEEN OFFERED FOR TAXATION BY THE ASSESSEE. 2. THE BRIEF FACTS RELATING TO THIS CASE ARE THAT THE ASSESSEE IS ENGAGING IN THE BUSINESS OF MANUFACTURING, PROCESSING AND SALE AND 2 OTHERWISE TO DEAL IN THE SMOKELESS SPECIAL FUELS (SSF) IN RAMNAGAR DISTRICT CHANDAULI. THE RETURN SHOWING TOTAL INCOME OF RS.11,3 55/ - AND AFTER MAKING VARIOUS ADDITIONS THE ASSESSMENT WAS MADE ON AN INCOME OF RS.13,22,140/ - DURING THE YEAR THE ASSESSEE SOLD THE LAND AND SHOWN THE LONG TERM CAPITAL LOSS AT RS.4,03,811/ - W HILE COMPUTING THE CAPITAL LOSS , HE IGNORED THE PR O V ISION OF SE CTION 50C. THE ASSESSING OFFICER INVOKING THE PROVISION OF SECTION 50C MADE THE ADDITION AND LEVIED THE PENALTY U/S.3,91,100/ - . 3. THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A), THE CIT(A) DELETED THE PENALTY BY OBSERVING AS UNDER: THE SUBMISSIONS OF TH E AR AND THE CONTENTIONS OF THE ASSESSING OFFICER HAVE BEEN CONSIDERED. THE FIRST OBJECTION OF THE AR IS THAT THE NO INFORMATION FURNISHED IN THE RETURN OF INCOME WAS FOUND TO BE INACCURATE OR WRONG. THE APPELLANT HAD NOT HIDDEN OR CONCEALED ANY INFORMATIO N FROM THE ASSESSING OFFICER IT WAS PURELY A RE - COMPUTATION OF CAPITAL GAINS UNDER THE PROVISIONS OF S.50C. IT HAS BEEN HELD BY HON'BLE SUPREME COURT IN THE JUDGMENT REPORTED IN [2010] 3 TAXMAN.COM 47 (ALSO REPORTED IN 2010 (322) ITR 158) IN THE CASE OF M/ S. RELIANCE PETROPRODUCTS THAT FOR LEVYING PENALTY UNDER SECTION 271(1)(C), THERE HAS TO BE CONCEALMENT OF PARTICULARS OF INCOME BY THE ASSESSEE OR THE ASSESSEE MUST HAVE FURNISHED INACCURATE PARTICULARS OF INCOME. WHERE NO INFORMATION GIVEN IN THE RETURN IS FOUND TO BE INCORRECT OR INACCURATE, THE ASSESSEE CANNOT BE HELD GUILTY OF FURNISHING INACCURATE PARTICULARS. IN ORDER TO EXPOSE THE ASSESSEE TO PENALTY, UNLESS THE CASE IS STRICTLY COVERED BY THE PROVISION, THE PENALTY PROVISION CANNOT BE INVOKED. THE ASSESSEE'S CASE IS ALSO HAVING THE SAME FACTS AND CIRCUMSTANCES. ULTIMATELY, IN ASSESSEE'S CASE, RE - COMPUTATION OF CAPITAL GAIN WAS MADE U/S 50C, WHICH CAN NEITHER BE HELD AS CONCEALMENT OF INCOME OR FILING OF 3 INACCURATE PARTICULARS OF INCOME. IT IS ALSO S EEN THAT AT LEAST, PRIMA FACIE, THE ASSESSEE COULD NOT BE HELD GUILTY OF FURNISHING INACCURATE PARTICULARS AS THERE WAS NO FINDING THAT ANY DETAILS SUPPLIED BY THE ASSESSEE IN ITS RETURN WERE FOUND TO BE INCORRECT OR ERRONEOUS OR FALSE. THE NON CALCULATION OF CAPITAL GAIN UNDER SECTION 50C BY THE ASSESSEE CANNOT ON ITSELF LEAD TO A CONCLUSION THAT THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS KEEPING IN LIGHT THE FACT THAT THE ACTUAL SALE PROCEED WAS DECLARED IN THE RETURN OF INCOME BY THE ASSESSEE HONE STLY. MERELY BECAUSE THE ASSESSEE HAD DECLARED THE ACTUAL SALE PROCEEDS OF LANDS AND NOT CALCULATED THE CAPITAL GAIN AS PER SECTION 50C WHICH WAS NOT ACCEPTED BY THE ASSESSING OFFICER, THAT, BY ITSELF, WOULD NOT ATTRACT THE PENALTY U/S 271(L)(C) OF THE INC OME TAX 1961. THEREFORE, CONSIDERING ALL THESE FACTS AND CIRCUMSTANCES, THE PENALTY LEVIED U/S 271(L)(C) AND AMOUNTING TO RS. 3,80,390/ - IS HEREBY DELETED . 4. NONE APPEARED ON BEHALF OF THE ASSESSEE. 5. WE DECIDE D TO DISPOSE OF THE APPEAL AFTER HEARING THE LEARNED DR AND GOING THROUGH THE ORDER OF THE TAX AUTHORITIES BELOW . W E NOTED THAT THE CASE OF THE ASSESSEE HAS DULY BEEN COVERED BY THE HON'BLE SUPREME COURT IN THE CASE OF RELIANCE PETRO P RODUCT S, (2010) 322 ITR 158 (SC) . THE CASE OF THE ASSESSEE , WE NOTED THAT THE ASSESSEE HAS DULY SUBMITTED ALL THE INFORMATION WHATEVER REQUIRED . I T IS NOT A CASE WHERE IT CAN BE SAID THAT THE PARTICULARS OF INCOME FILED BY THE ASSESSEE WERE NOT CORRECT. THE PENALTY HAS BEEN IMPOSED BY THE ASSESSING OFFICER FOR FURNIS HING THE INACCURATE PARTICULARS OF INCOME NO T FOR CONCEALMENT OF PARTICULARS OF INCOME . I THEREFORE DID NOT FIND ANY INFIRMITY OR ILLEGALITY IN THE ORDER OF THE CIT(A) . I N MY OPINION , THE CIT(A) HAS RIGHTLY DELETED 4 THE PENALTY IMPOSED ON THE ASSESSEE . I AC CORDINGLY CONFIRM THE ORDER OF THE CIT(A). 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 / 9 /201 5 . SD/ - (P.K. BANSAL) ACCOUNTANT MEMBER DATED: 11 / 9 /201 5 PRABHAT KUMAR KESARWANI, SR.P.S. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR