Shri Parasar Shantilal Pandya, Ahmedabad V. The Asstt. Commissioner of Income Tax, Central Circle-2(4), Ahmedabad

ITA 3351/AHD/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5678 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 13-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANKIT TALSANIA
• Section: 142(1); 153A; 132; 15

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER , .., SN ITA NO. AY APPELLANT RESPONDENT 1-6 3351 TO 3356/AHD/2016 2008- 09 TO 2013- 14 SHRI PARASAR SHANTILAL PANDYA, 1/144, 4TH FLOOR, NARESHWAR FLATS, NR. C.P. NAGAR, SOLA ROAD, AHMEDABAD-380061 PAN : ANMPP 4723 E ACIT, CENTRAL CIRCLE-2(4), AHMEDABAD ASSESSEE BY : SHRI ANKIT TALSANIA, AR REVENUE BY : SHRI MUDIT NAGPAL, SR. DR / DATE OF HEARING : 14/07/2017 # % / DATE OF PRONOUNCEMENT: 28/07/2017 / O R D E R PER BENCH : THE PRESENT SIX APPEALS ARE DIRECTED AT THE INSTANC E OF THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-13, AHMEDABAD D ATED 07.09.2016 PASSED FOR ASSESSMENT YEARS 2008-09 TO 2013-14. TH ESE APPEALS HAVE ARISEN OUT AGAINST ASSESSMENT PROCEEDINGS UNDERTAKE N UNDER SECTION 143(3)/144 R.WS. 153A OF THE INCOME-TAX ACT, 1961 ( HEREINAFTER REFERRED TO AS THE ACT). 2. IT IS PERTINENT TO OBSERVE THAT A SEARCH UNDER S ECTION 132 OF THE ACT WAS CARRIED OUT IN THE GROUP CASES OF INDIA GREEN R EALITY PVT. LTD. ON 15.03.2013. THE ASSESSEE WAS ALSO COVERED UNDER TH E SEARCH ALONG WITH OTHER CASES OF THE GROUP. NOTICES UNDER SECTION 15 3A OF THE ACT WERE ISSUED ON 28.10.2013, REQUIRING THE ASSESSEE TO FIL E THE RETURNS OF INCOMES ITA NOS. 3351 TO 3356/AHD/2016 PARASAR SHANTILAL PANDYA VS. ACIT AYS : 2008-09 TO 2013-14 - 2 FOR ASSESSMENT YEARS 2007-08 TO 2012-13. ACCORDING TO ASSESSING OFFICER, THE ASSESSEE DID NOT FILE THE RETURNS. IN ASSESSME NT YEAR 2013-14, THE ASSESSMENT PROCEEDINGS WERE INITIATED WITH THE ISSU ANCE OF NOTICES UNDER SECTION 142(1) OF THE ACT. SINCE THE ASSESSEE FAIL ED TO COMPLY WITH THE NOTICES, LD. ASSESSING OFFICER HAS PASSED EX-PARTE ASSESSMENT ORDERS AND THE APPEALS WERE ALSO DISMISSED FOR WANT OF PROSECU TION. 3. ALONG WITH THESE QUANTUM APPEALS, WE HAVE HEARD THE APPEALS OF THE ASSESSEE BEARING ITA NO.3121 TO 3127/AHD/2017 A ND 3432 TO 3438/AHD/2016. UNDER THESE APPEALS, THE ASSESSEE H AS CHALLENGED THE LEVY OF PENALTY UNDER SECTION 271(1)(B) OF THE ACT FOR NON-COMPLIANCE OF THE NOTICES. WE HAVE CONFIRMED THE PENALTY WITH REG ARD TO NON- COMPLIANCE OF NOTICE ISSUED UNDER SECTION 271(1)(B) OF THE ACT DATED 14.10.2014, I.E., ITA NO.3432 TO 3438/AHD/2016 STAN DS DISMISSED. TAKING INTO CONSIDERATION THE EX-PARTE PROCEEDINGS AGAINST THE ASSESSEE AND THE ULTIMATE PUNISHMENT IN THE SHAPE OF TAX LIABILITY V IS--VIS THE NEGLIGENCE CONDUCTED BY THE ASSESSEE, WE ARE OF THE VIEW THAT THE PUNISHMENT IN THE SHAPE OF TAX LIABILITY IS DISPROPORTIONATE TO THE N EGLIGENCE SHOWN BY THE ASSESSEE. IT IS ALSO PERTINENT TO OBSERVE THAT SHR I SHANKARBHAI PATEL, ONE OF THE MAIN PERSONS OF THE GROUP, WAS HANDLING ALL THE SE MATTERS. HE WAS NOT KEEPING GOOD HEALTH AND PASSED AWAY ON 03.11.20 14. WE ALSO FIND THAT IN SOME OF THE YEARS, THE ASSESSING OFFICER HA S MADE THE ADDITION WITHOUT SUPPORT OF ANY MATERIAL FOUND DURING THE CO URSE OF SEARCH, WHICH, IN VIEW OF THE LATEST DECISION OF THE HONBL E GUJARAT HIGH COURT IN THE CASE OF PR. CIT VS. SAUMYA CONSTRUCTIONS P. LTD ., REPORTED IN [2017] 81 TAXMANN.COM 292 (GUJARAT), IS NOT SUSTAINABLE. CON SIDERING THE CUMULATIVE SETTING OF ALL THESE FACTORS, WE DEEM IT PROPER TO SET ASIDE THE IMPUGNED ORDERS AND RESTORE ALL THESE ISSUES TO THE FILE OF THE ASSESSING ITA NOS. 3351 TO 3356/AHD/2016 PARASAR SHANTILAL PANDYA VS. ACIT AYS : 2008-09 TO 2013-14 - 3 OFFICER FOR FRESH ASSESSMENT ORDERS IN THESE ASSESS MENT YEARS. THE ASSESSEE WILL BE AT LIBERTY TO SUBMIT THE DETAILS, IF ANY, IN SUPPORT OF HIS EXPLANATION AND THEREAFTER THE LD. ASSESSING OFFICE R SHALL DETERMINE THE TAXABLE INCOME OF THE ASSESSEE IN ACCORDANCE WITH L AW. THE ASSESSEE SHALL CO-OPERATE WITH THE ASSESSING OFFICER AND ATTEND TH E NOTICE ISSUED BY THE ASSESSING OFFICER. 4. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSE SSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 28 TH JULY, 2017 AT AHMEDABAD. SD/- SD/- N.K. BILLAIYA (ACCOUNTANT MEMBER) (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 28/07/2017 **BT / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. % ' / CONCERNED CIT 4. ' ) ( / THE CIT(A)- 5. % , % , /DR,ITAT, AHMEDABAD, 6. 1 / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) % ITAT, AHMEDABAD