Income Tax Officer, Kanpur V. M/s Kariwala Synthetics Pvt. Ltd, Kanpur

ITA 335/LKW/2014

• Counselvise Citation: 33523714 RSA 2014
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 24-09-2014
• Assessment Year: 2001-2002
• Appeal Filed On: 02-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K RAM
• Keywords: Unexplained cash credit; Bonafide belief; Revised return
• Section: 139(5); 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 335/LKW/2014 ASSESSMENT YEAR: 2001 - 02 INCOME TAX OFFICER WARD 6(1) KANPUR V. M/S KARIW ALA SYNTHETICS PVT. LTD. 62, JHAJHARIA MARKET GENERALGANJ, KANPUR PAN /PAN : AAACH5992J (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. R. K. RAM, D.R. RESPONDENT BY: SHRI. SWARAN SINGH, FCA DATE OF HEARING: 24 09 2014 DATE OF PRONOUNCEMENT: 15 10 201 4 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) ON A SOLITARY ISSUE THAT THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS.3,55,950/ - LEVIED UNDER SECTION 271(1)(C) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT'). 2 . DURING THE COURSE OF HEARINIG OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS FILED THE ORIGINAL RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 29.10.2001 UNDER SE CTION 139 OF THE ACT ALONG WITH AUDITED BALANCE SHEET, TAX AUDIT REPORT, ETC. THE ASSESSEE HAD RECEIVED NINE CHEQUES OF RS.1 LAKH EACH FROM NINE DIFFERENT PERSONS BETWEEN 6.12.2000 AND 11.12.2000, AGGREGATING TO RS.9 LAKHS. THE CREDITORS WITH RESPECT TO THE FOLLOWING NINE CREDIT ENTRIES AGGREGATING TO RS.9 LAKHS DID NOT PROVIDE NECESSARY DETAILS TO THE ASSESSEE : - PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : S.NO. NAME DATE OF CREDIT AMOUNT 1. SHRI AJAY KUMAR YADAV 06.12.2000 1,00,000/ - 2. SHRI RAJESH KUMAR YADAV 06.12.2000 1,00,000/ - 3. SHRI SHIV KUMAR SHARMA 06.12.2000 1,00,000/ - 4. SHRI RAM BALAK SHARMA 06.12.2000 1,00,000/ - 5. SHRI MAHESH GUPTA 06.12.2000 1,00,000/ - 6. SHRI KRIPA SHANKER TIWARI 11.12.2000 1,00,000/ - 7. SHRI ANAND SHUKLA 11.12.2000 1,00,000/ - 8. SHRI SUKHLAL GUPTA 11.12.2000 1,00,000/ - 9. SHRI LAXMI SHANKER AVASTHI 11.12.2000 1,00,000 / - TOTAL 9,00,000/ - 3 . T HE ASSESSEE HAD REVISED ITS RETURN OF INCOME ON 25.1.2002 UNDER SECTION 139(5) OF THE ACT AND OFFERED ALL THE NINE CREDITS AGGREGATING TO RS.9 LAKHS AS ITS INCOME. ON THE BASIS OF THE REVISED RETURN, THE ASSESSING OFFICER INITIATED PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT, AGAINST WHICH AN APPEAL WAS FILED BEFORE THE LD. CIT(A) WITH THE SUBMISSION THAT THE ASSE SSEE ITSELF HAS REVISED ITS RETURN OFFERING ADDITON OF RS.9 LAKHS WHEN IT COULD NOT OBTAIN THE REQUISITE INFORMATION FROM THE CREDITORS. THEREFORE, THE AMOUNT WAS NOT OFFERED ON ACCOUNT OF DETECTION OF CREDIT ENTRIES BY THE REVENUE. BESIDE S , THE ASSESSEE HAS ALSO PLACED RELIANCE UPON VARIOUS JUDICIAL PRONOUNCEMENTS. THE LD. CIT(A), RE - EXAMINED THE ISSUE IN THE LIGHT OF VARIOUS JUDICIAL PRONOUNCEMENTS REFERRED TO BY THE ASSESSEE AND BEING CONVICNED WITH IT, HE DELETED THE PENALTY. THE RELEVANT OBSERVATIO NS OF THE LD. CIT(A) IN THIS REGARD ARE EXTRACTED HEREUNDER: - I HAVE CONSIDERED THE WRITTEN SUBMISSIONS OF THE APPELLANT, AND THE ARGUMENTS PLACED IN THE ASSESSMENT AND PENALTY ORDERS AND THE PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : DECISIONS RELIED UPON BY THE APPELLANT. THE ISSUES ARE SUMMARI ZED AS UNDER - I) THE REVISED RETURN OF INCOME WAS FILED VOLUNTARILY, PRIOR TO DETECTION BY THE DEPARTMENT, IN GOOD FAITH AND UNDER BONAFIDE BELIEF, THE A.R. HAS EMPHASIZED THAT THE INCOME HAS BEEN DISCLOSED BEFORE THE DETECTION OR THE INVESTIGATION BY THE AO, HENCE, THE ASSESSEE PRESERVES HIS BONAFIDE AND SEEKS IMMUNITY FROM THE PENALTY. THE SUBMISSION IS ANALYSED IN VIEW OF THE DECISION REACHED BY THE HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF SONALI JAIN, APPEAL NO.88 OF 2008 DECIDED ON 29 - 07 - 2011 AN D THE RATIO PROPOUNDED COVER THE CIRCUMSTANCES IN THE PRESENT CASE. ACCORDINGLY, THE PENALTY STANDS DELETED. 4 . NOW THE REVENUE HAS PREFERRED AN APPEAL BEFORE THE TRIBUNAL AND HAS PLACED RELIANCE UPON THE PENALTY ORDER; WHEREAS THE LD. COUNSEL FOR THE ASSESS EE HAS SUBMITTED THAT SINCE THE ASSESSEE HAS OFFERED THE ADDITIONAL INCOME OF RS.9 LAKHS ON ACCOUNT OF NON - RECEIPT OF RELEVANT INFORMATION FROM THE CREDITORS BY FILING A REVISED RETURN, THERE IS NO CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICUL ARS ON THE PART OF THE ASSESSEE. MOREVOER, THE REVISED RETURN WAS NOT FILED ON DETECTION OF CREDIT ENTRIES IN THE BOOKS OF ACCOUNT BY THE DEPARTMENT. 2 . HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDERS OF THE AUTHORITIES BELOW, WE FIND THAT UNDISPUTEDLY REVISED RETURN OFFERING ADDITIONAL INCOME OF RS.9 LAKHS ON ACCOUNT OF UNEXPLAINED CASH CREDIT WAS VOLUNTARILY FILED BY THE ASSESSEE BEFORE DETECTION OF THE CREDIT ENTRIES IN THE BOOKS OF ACCOUNT BY THE R EVENUE AUTHORITIES, THEREFORE, IT CANNOT BE HELD THAT THERE WAS ANY CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS ON THE PART OF PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 4 - : THE ASSESSEE. WE ACCORDINGLY FIND NO MERIT IN THE REVENUES APEAL AND CONFIRM THE ORDER OF THE LD. CIT(A). 3 . IN THE RESULT, APPEAL OF THE REVENUE STANDS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENT I ONED ON THE CAPTION PAGE. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15 TH OCTOBER , 2014 JJ: 26 09 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )