ITO, WD-51(4), KOLKATA, Kolkata V. Sri Rabindra Nath Sikdar, Kolkata

ITA 360/KOL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0637 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 04-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A, KOLKATA [BEFORE SHRI VEERAVALLI DURGA RAO, JM AND SHRI WASEEM AHMED, AM] I.T.A. NO. 360/KOL/2016 ASSESSMENT YEAR: 2006-07 ITO, WARD 51(4)...............................APPELLANT BLOCK DS-2&3, MANIKTALA, CIVIC CENTRE, UTTARPARA KOLKATA 700054. SRI RABINDRA NATH SIKAR..................................RESPONDENT BC 126, SAMAR PALLY, KRISHNAPUR, KOLKATA - 700102 [PAN : AOTPS 2045 G] APPEARANCES BY: SHRI SALLONG YADEN, ADDL. CIT, APPEARING ON BEHALF OF THE REVENUE. NONE APPEARING ON BEHALF OF THE ASSESSEE. DATE OF CONCLUDING THE HEARING : DECEMBER 12, 2017 DATE OF PRONOUNCING THE ORDER : DECEMBER 15, 2017 ORDER PER VEERAVALLI DURGA RAO, JM THIS APPEAL IS FILED BY THE DEPARTMENT DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) -15, KOLKATA DATED 10.12.2015 FOR THE A.Y. 2006-07. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS ENGAGED IN TRADING OF RICE AND PULSE, FILED A RETURN OF INCOME BY DECLARING A TOTAL INCOME OF RS. 84,397/-. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS NOT APPEARED BEFORE THE A.O. THEREFORE, THE A.O. HAS COMPLETED THE ASSESSMENT BY ESTIMATING NET PROFIT 5% OF THE TOTAL TURNOVER OF THE ASSESSEE. THEREAFTER THE A.O. HAS INITIATED PENALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT. DURING THE COURSE OF THE PENALTY PROCEEDINGS, THE ASSESSEE HAS NOT APPEARED BEFORE THE 2 I.T.A. NO. 360/KOL/2016 ASSESSMENT YEAR: 2006-07 RABINDRA NATH SIKDAR A.O. THEREFORE, THE A.O. HAS LEVIED A PENALTY UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT OF RS. 25,81,568/-. ON THE GROUND THAT THE ASSESSEE CONCEAL THE PARTICULARS OF INCOME AND FURNISHED INACCURATE PARTICULARS OF INCOME. 3. ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A). IT WAS SUBMITTED BEFORE THE LD. CIT(A) THAT ALL THE DETAILS WAS FILED BEFORE THE A.O. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS. THE A.O. ONLY ESTIMATED THE INCOME OF THE ASSESSEE, THEREFORE, NO PENALTY CAN BE LEVIED UNDER SECTION 271(1)(C) OF THE ACT. THE LD. CIT(A) AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE HE HAS OBSERVED THAT THE ESTIMATION MADE BY THE A.O. ON NET PROFIT OF 5%, THE CIT HAS REDUCED TO 1% AND THEREFORE, PENALTY CANNOT BE LEVIED UNDER SECTION 271(1)(C) OF THE ACT. 4. REVENUE CARRIED THE APPEAL BEFORE THE TRIBUNAL. NONE APPEARED FOR THE ASSESSEE. 5. WE HAVE HEARD THE LEARNED DR. WE HAVE CONSIDERED THE ORDER PASSED BY THE AUTHORITIES BELOW. IN THIS CASE, THE ASSESSING OFFICER ESTIMATED NET PROFIT OF BUSINESS AT 5% OF TURNOVER, THE SAME IS REDUCED BY THE LD. CIT(A) TO 1% AS PER THE CIT ORDERS. WE FIND THAT THE A.O. HAS PASSED BY THE ASSESSMENT ORDER BY ESTIMATING THE INCOME OF THE ASSESSEE. THE VERY SAME ESTIMATION HAS BEEN REDUCED BY THE CIT(A) UNDER THESE FACTS AND CIRCUMSTANCES, WE ARE OF THE OPINION THAT IT IS NOT A FIT TO IMPOSE THE PENALTY UNDER SECTION 271(1)(C) OF THE 3 I.T.A. NO. 360/KOL/2016 ASSESSMENT YEAR: 2006-07 RABINDRA NATH SIKDAR ACT. WE FIND NO INFIRMITY IN THE ORDERS PASSED BY THE LD. CIT(A). THIS APPEAL BY THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH DECEMBER, 2017. SD/- SD/- (WASEEM AHMED) (VEERAVALLI DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15/12/2017 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. SRI RABINDRA NATH SIKDAR, BC-126, SAMAR PALLY, KRISHNAPUR, KOLKATA 700102. 2. ITO, WARD 51(4), BLOCK DS-2&3, MANICKTALA, CIVIC CENTRE, UTTARAPAN, KOLKATA 700054. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, KOLKATA