Kama Steels Private Limited, JODHPUR V. ACIT-1, JODHPUR

ITA 33/JODH/2011

• Counselvise Citation: 3323314 RSA 2011
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 07-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 ITA 33-10 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR. ( BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ) ITA NO. 33/JODH/2010 ASSTT. YEAR : 2002-03. M/S. HASMAT MATERNITY & CHILDREN VS. THE INCOME- TAX OFFICER, HOSPITAL, 78-79 NAGORI GARDEN, WARD 2, BHILWARA. BHILWARA. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI MAHESH KUMAR DATE OF HEARING : 02.12.2011. DATE OF PRONOUNCEMENT : 09.12.2011. ORDER DATED : 09/12/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST CONFIRMING L EVY OF PENALTY UNDER SECTION 271(1)(C) AT RS. 77,200/-. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER , WRITTEN SUBMISSIONS ARE PLACED ON RECORD. 3. ON THE OTHER HAND, THE LD. D/R PLACED RELIANCE O N THE ORDERS OF THE ASSESSING OFFICER AND LD. CIT (A). 4. THE APPEAL OF THE ASSESSEE IS BEING DISPOSED OFF AFTER CONSIDERING THE SUBMISSIONS OF THE LD. D/R AND WRITTEN SUBMISSIONS OF THE ASSES SEE AND ORDERS OF THE AUTHORITIES BELOW. 2 5. DURING THE COURSE OF SURVEY CONDUCTED UNDER SECT ION 133A, THE ASSESSEE HAS SURRENDERED ADDITIONAL INCOME OF RS. 4,74,400/-. HO WEVER, SUBSEQUENTLY WHILE FILING THE RETURN OF INCOME, ASSESSEE FILED RETURN DECLARING A LOSS OF RS. 1,13,280/-. THE ASSESSMENT WAS COMPLETED ON A TOTAL INCOME OF RS. 5,78,240/-. AFTER APPEAL EFFECT, THE INCOME WAS FINALLY DETERMINED AT RS. 2,12,496/-. PENALTY PROC EEDINGS WERE INITIATED AND ASSESSEE FILED ITS SUBMISSIONS. AFTER CONSIDERING THE SUBMI SSIONS, THE ASSESSING OFFICER WAS SATISFIED THAT ASSESSEE HAS CONCEALED PARTICULARS O F INCOME BY FURNISHING INACCURATE PARTICULARS. THEREFORE, HE LEVIED A PENALTY OF RS. 77,200/- UNDER SECTION 271(1)(C). 6. ASSESSEE PREFERRED APPEAL BEFORE LD. CIT (A). D ETAIL WRITTEN SUBMISSIONS WERE FILED. HOWEVER, THE LD. CIT (A) WAS NOT SATISFIED. THEREFORE, HE CONFIRMED THE LEVY OF PENALTY. 7. AFTER CONSIDERING THE WRITTEN SUBMISSIONS AND PE RUSING THE MATERIAL ON RECORD, WE FIND THAT ASSESSEE DESERVES TO SUCCEED IN ITS APPEA L. IT IS SEEN THAT UNDER VARIOUS HEADS CERTAIN DISCREPANCIES WERE FOUND DURING THE COURSE OF SURVEY. THE ASSESSEE, JUST TO AVOID LITIGATION, AGREED TO SURRENDER CERTAIN INCOME ON A CCOUNT OF VARIOUS DISALLOWANCES OR CASH DIFFERENCE OF RS. 35000/- AND CASH FOUND. THE VARI OUS HEADS ON ACCOUNT OF WHICH THE ASSESSEE AGREED TO SURRENDER WAS HOSPITAL BUILDING ACCOUNT, INDOOR PATIENT INCOME, OUTDOOR PATIENT INCOME, MEDICINES STOCK VALUE DIFFE RENCE ETC. ETC. HOWEVER, WHEN FINALLY BOOKS OF ACCOUNT ARE AUDITED, IT WAS FOUND THAT THE RE WAS A LOSS EVEN AFTER SETTING OFF SURRENDERED AMOUNT. THEREFORE, LOSS RETURN WAS FILE D. THE ASSESSING OFFICER HAS NOT ACCEPTED THE SAME. HE COMPLETED THE ASSESSMENT ON A FIGURE OF RS. 5,78,240/-. THE LD. CIT (A) ALLOWED MAJOR RELIEF AS REMAINING AMOUNT IS RS. 2,12,496/-. THE LD. CIT (A) DELETED THE ADDITION ON ADHOC BASIS IN PART AND ADH OC DISALLOWANCE ONLY REMAINS. IN OUR 3 CONSIDERED VIEW, ON ADHOC DISALLOWANCE AT LEAST PEN ALTY IS NOT LEVIABLE. THEREFORE, WE CANCEL THE LEVY OF PENALTY. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 09. 12.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, COPY FORWARDED TO :- M/S. HASMAT MATERNITY & CHILDREN HOSPITAL, BHILWARA . THE ITO WARD 2, BHILWARA. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 33/JODH/2010) BY ORDER, AR ITAT JODHPUR.