Mr. Yogesh Raheja, New Delhi V. DCIT, New Delhi

ITA 327/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4296 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 15-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Keywords: Salary income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER ITA NO. 327/DEL/2015 ASSTT. YEAR : 2004-05 YOGESH RAHEJA C/O. A.L.SEHGAL & CO., CA, 1102, PRAKASH DEEP BUILDING 7, TOLSTOY MARG, NEW DELHI VS DCIT CENTRAL CIRCLE-10 NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. ADSPR6868E ASSESSEE BY : NONE REVENUE BY : SH. T VASANTHAN, S R. DR DATE OF HEARING : 25.09.2017 DATE OF PRONOUNCEMEN T : 25 . 09.2017 ORDER PER R.K.PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 29 TH DECEMBER, 2014 OF THE CIT(A)- 41, NEW DELHI RELATI NG TO ASSESSMENT YEAR 2004-05. 2. DESPITE SERVICE OF NOTICE NON-APPEARED ON BEHAL F OF THE ASSESSEE. THEREFORE, THIS APPEAL IS BEING DECIDED ON THE BASI S OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD. DR. 3. LEVY OF PENALTY OF RS. 45,000/- U/S 271(1)(C) O F THE IT ACT BY THE AO AND UPHELD BY THE CIT(A) IS THE ONLY ISSUE R AISED BY THE ASSESSEE IN THE GROUNDS OF APPEAL. ITA NO. 327/DEL/2015 2 4. FACTS OF THE CASE, IN BRIEF, ARE THAT THE RESIDE NCE OF THE ASSESSEE WAS SEARCH BY THE INVESTIGATION WING OF THE DEPARTM ENT U/S 132(1) OF THE INCOME TAX ACT, 1961 ON 10 TH FEBRUARY, 2010. IN RESPONSE TO NOTICE U/S 153A, THE ASSESSEE FILED HIS RETURN OF I NCOME ON 21 ST OCTOBER, 2011 DECLARING TOTAL INCOME OF RS. 3,27,62 2/-. THE AO OBSERVED THAT THE INCOME OF THE ASSESSEE CONSISTS O F INCOME FROM SALARY AT RS. 1,99,000/- AND INCOME FROM BUSINESS O F RS. 1,29,622/-. THE AO FURTHER NOTICED FROM THE BANK ACCOUNT FILED DURING THE COURSE OF ASSESSMENT PROCEEDINGS THAT THE ASSESSEE HAS DEP OSITED RS. 5,93,797/- THROUGH CHEQUES DURING THE YEAR AND ALS O DEPOSITED CASH OF RS. 2,20,000/- ON DIFFERENT DATES. ON BEING ASKED B Y THE AO TO FURNISH THE SOURCE OF THESE DEPOSITS IN THE BANK ACCOUNT, T HE ASSESSEE FURNISHED ONLY THE DETAILS OF SOURCE OF CASH DEPOSI TS. HOWEVER, NO DETAILS REGARDING DEPOSITS THROUGH CHEQUES WERE FUR NISHED. REJECTING THE VARIOUS EXPLANATION GIVEN BY ASSESSEE REGARDING THE SOURCE OF DEPOSITS, THE AO MADE ADDITION OF RS. 1,50,000/- ON ADHOC BASIS ON ACCOUNT OF UN-EXPLAINED DEPOSIT THROUGH CHEQUES AND CASH IN THE BANK ACCOUNT. 5. IN APPEAL THE LD. CIT(A) UPHELD THE ADDITION MAD E BY THE AO. THEREAFTER, THE AO INITIATED PENALTY PROCEEDINGS U /S 271(1)(C) OF THE IT ACT. REJECTING THE VARIOUS EXPLANATION GIVEN BY THE ASSESSEE, THE AO LEVIED PENALTY OF RS. 45,000/- U/S 271(1)(C) OF THE IT ACT WHICH HAS BEEN UPHELD BY THE CIT(A). 6. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 7. I HAVE CONSIDERED THE RIVAL ARGUMENTS ADVANCED BY THE LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. I FIN D THE PENALTY OF RS. ITA NO. 327/DEL/2015 3 45,000/- HAS BEEN LEVIED BY THE AO BASICALLY ON ACC OUNT OF ADHOC ADDITION OF RS. 1,50,000/- MADE BY HIM WHICH HAS BE EN SUSTAINED BY THE CIT(A). IT HAS BEEN HELD IN VARIOUS DECISIONS T HAT PENALTY CANNOT BE LEVIED ON ACCOUNT OF ADHOC ADDITIONS OR ADDITION S MADE ON ESTIMATE BASIS. SINCE IN THE INSTANT CASE PENALTY HAS BEEN L EVIED ON ACCOUNT OF ADHOC ADDITIONS MADE BY AO WHICH HAS BEEN SUSTAINED BY THE CIT(A), THEREFORE, IN MY OPINION THE PENALTY SO LEVIED BY T HE AO AND SUSTAINED SUBMITTED BY THE CIT(A) IS NOT JUSTIFIED. I, THEREF ORE, SET ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE AO TO CANCEL THE PENALTY SO LEVIED. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. (ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF I.E. ON 25.09.2017) SD/- (R.K.PANDA) ACCOUNTANT MEMBER DATED: 25 /09/2017 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGIS TRAR ITA NO. 327/DEL/2015 4 DATE INITIAL 1. DRAFT DICTATED ON 25/09/2017 2. DRAFT PLACED BEFORE AUTHOR 25/09/2017 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 25 09/2017 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 25 09/2017 5. APPROVED DRAFT COMES TO THE SR.PS/PS 25 09/2017 6. KEPT FOR PRONOUNCEMENT ON 7. FILE SENT TO THE BENCH CLERK 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.