M/s M.P. State cooperative Housing Fedration Ltd., Bhopal V. THE ACIT-1(2), Bhopal

ITA 310/IND/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5852 (ITAT-INDORE)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 06-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S S DESHPANDE
• Section: 143(3)

Judgement Text

M/S M.P. STATE COOPERATIVE HOUSING FED.LTD. ITA NO.310/IND/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER ITA NO. 310/IND/2016 A.Y.2006-07 M/S. M.P. STATE COOPERATIVE HOUSING FEDERATION LTD. BHOPAL ::: APPELLANT VS ASSTT. COMMR. OF INCOME TAX 1(2) BHOPAL ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI MOHD. JAVED DATE OF HEARING 29.6.2016 DATE OF PRONOUNCEMENT 1 1 .7.2016 O R D E R THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 5.1.2016 OF THE LEARNED CIT(A)-31, NE W DELHI, CAMP BHOPAL. M/S M.P. STATE COOPERATIVE HOUSING FED.LTD. ITA NO.310/IND/2016 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS THAT THE LE ARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE PENALTY OF RS.2,00,000/- U/S 271(1)(C) OF THE ACT. 3. SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME ON 30.10.2006 DECLARING INCOME OF RS.12,47,449/- AFTER CLAIMING DEDUCTION U/S 80P(2)(A)( I) OF THE ACT. THE CASE WAS ASSESSED U/S 143(3) AT A TOTAL INCOME OF RS.34,41,600/- ON 29.9.2008 AFTER MAKING ADDITIONS ON ACCOUNT OF MISCELLANEOUS INCOME OF RS.4,12,030/- AND INTEREST INCOME OF RS.17,82,130/-. THE LD. CIT(A) DELETED THE ADDITION OF RS. 17,82,130/- AN D THE ORDER OF THE LD. CIT(A) WAS UPHELD BY THE TRIBUNAL. O N THE BASIS OF THE ADDITIONS MADE ON ACCOUNT OF MISCELLANEOU S INCOME OF RS. 4,12,030/- AND THE INTEREST INCOME, T HE PENALTY PROCEEDINGS WERE INITIATED BY THE ASSESSING O FFICER M/S M.P. STATE COOPERATIVE HOUSING FED.LTD. ITA NO.310/IND/2016 3 FOR FURNISHING INACCURATE PARTICULARS OF INCOME AND ACCORDINGLY THE PENALTY OF RS.2 LACS WAS IMPOSED FOR TH E ADDITIONS UNDER THE HEAD MISCELLANEOUS INCOME. ON APPEAL, THE LEARNED CIT(A) CONFIRMED THE PENALTY. NOW THE ASSESSEE IS IN APPEAL. 4. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AUTHORITIES BELOW WERE NOT JUSTIFI ED IN IMPOSING AND CONFIRMING THE PENALTY. THE LEARNED COUNS EL FOR THE ASSESSEE DREW MY ATTENTION TO THE LANGUAGE OF SECTION 271(1)(C) OF THE ACT WHEREIN IT IS PROVIDED THAT IF THE ASSESSING OFFICER IN THE COURSE OF ANY PROCEEDIN GS UNDER THIS ACT, IS SATISFIED THAT ANY PERSON HAS CONCEAL ED THE PARTICULARS OF HIS INCOME OR FURNISHED INACCURATE PARTICULARS OF SUCH INCOME, HE MAY DIRECT THAT SUCH PE RSON SHALL PAY BY WAY OF PENALTY. HE SUBMITTED THAT IN TH E PRESENT CASE, THE ASSESSEE HAS NEITHER CONCEALED ANY PARTICULARS OF INCOME NOR FURNISHED ANY INACCURATE M/S M.P. STATE COOPERATIVE HOUSING FED.LTD. ITA NO.310/IND/2016 4 PARTICULARS. COMPLETE DETAILS WERE FILED ALONG WITH TH E RETURN AND THE ASSESSEE CLAIMED THE EXEMPTION U/S 80P(2A)(I) ON THE TOTAL INCOME TREATING IT TO BE A BUSI NESS INCOME. WHILE PASSING THE ASSESSMENT, THE ASSESSING OFFICER TREATED THE MISCELLANEOUS INCOME AS NOT ELIGIB LE FOR DEDUCTION U/S 80P(2A)(I). THE LEARNED COUNSEL FOR THE ASSESSEE THUS SUBMITTED THAT THERE IS NO CONCEALMENT. IT IS MERELY AN INTERPRETATION OF LAW AND DISALLOWANCE OF THE LEGAL CLAIM OF THE ASSESSEE AND AS SUCH THE PENALTY CANNOT BE SUSTAINED. HE RELIED ON THE JUDGEMENT OF THE HON` BLE SUPREME COURT IN THE CASES OF CIT VS RELIANCE PETROCHEMICALS REPORTED IN 322 ITR 158 AND CEMENT MARKETING REPORTED IN 124 ITR 15. ON THE OTHER HAND T HE LD. DR RELIED ON THE ORDERS OF THE AUTHORITIES BELOW . 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, I FIND F ORCE IN THE SUBMISSION OF THE LEARNED COUNSEL FOR THE ASSESS EE. I HAVE ALSO GONE THROUGH THE RECORDS AND THE ORDERS OF T HE M/S M.P. STATE COOPERATIVE HOUSING FED.LTD. ITA NO.310/IND/2016 5 AUTHORITIES BELOW AND FIND THAT THE ASSESSEE HAS DISCLOS ED THE FULL PARTICULARS OF INCOME AND CLAIM THE EXEMPTION FOR TOTAL INCOME RECEIVED DURING THE COURSE OF BUSINESS. AS SUCH, THERE IS NO CONCEALMENT NOR FURNISHING OF ANY INACCURATE PARTICULARS OF INCOME. IN VIEW OF THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE AN D THE DECISIONS CITED BY HIM, NO PENALTY CAN BE SUSTAINE D ON THE FACTS OF THE CASE. I, THEREFORE, SET ASIDE THE ORD ERS OF THE AUTHORITIES BELOW AND DELETE THE PENALTY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. PRONOUNCED IN OPEN COURT ON 11 TH JULY, 2016 SD/- (D.T. GARASIA) JUDICIAL MEMBER 11 TH JULY, 2016 DN/- M/S M.P. STATE COOPERATIVE HOUSING FED.LTD. ITA NO.310/IND/2016 6 M/S M.P. STATE COOPERATIVE HOUSING FED.LTD. ITA NO.310/IND/2016 7