Shri Ravi A.S. Satnam Singh Saluja, Indore V. The ITO, Indore

ITA 361/IND/2010

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2309 (ITAT-INDORE)
• Duration Of Justice: 7 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-06-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 03-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N D PATWA
• Keywords: Opportunity of being heard
• Section: 147; 148

Judgement Text

RAVI A S SATNAM ITA 361/IND/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, HONBLE JUDICIAL MEMBER AND SHRI MANISH BORAD, HONBLE ACCOUNTANT MEM BER ITA NO. 361/IND/2010 A.Y. 2005-06 RAVI A.S. SATNAM SINGH SALUJA INDORE ::: APPELLANT VS. INCOMETAX OFFICER 5(1) INDORE ::: RESPONDENT APPELLANT BY SHRI ASHISH GOYAL AND SHRI N.D. PATWA RESPONDENT BY SHRI RAJIV JAIN DATE OF HEARING 27.2 .201 8 DATE OF PRONOUNCEMENT 2 8 .2.201 8 O R D E R PER SHRI MANISH BORAD, AM THIS APPEAL OF THE ASSESSEE RELATING TO THE ASSES SMENT YEAR 202005-06 IS DIRECTED AGAINST THE ORDER OF THE LE ARNED COMMISSIONER OF INCOME TAX (APPEALS)-II, INDORE DATED 26.2.2010 WHICH IS ARISING OUT OF THE ORDER U/S 271( 1)C) OF RAVI A S SATNAM ITA 361/IND/2010 2 THE ACT DATED 26.6.2009 FRAMED BY THE ITO, WARD 5(1), INDORE. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IS AGAINST THE O RDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMI NG THE PENALTY OF RS. 1,87,837/- IMPOSED U/S 271(1)(C) OF THE ACT FOR CONCEALMENT OF INCOME. BRIEFLY STATED, THE FAC TS, AS CULLED OUT FROM RECORD, ARE THAT THE ASSESSMENT U/S 14 7 READ WITH SECTION 148 OF THE ACT WAS COMPLETED ON 31.12.2008 IN THE CASE OF THE ASSESSEE WHO IS AN INDIV IDUAL THEREBY ASSESSING THE INCOME AT RS. 7,00,510/- AS AGAIN ST THE INCOME SHOWN BY THE ASSESSEE AT RS. 1,08,210/-. O NE OF THE ADDITIONS WAS OF RS. 5,26,976/- RELATING TO UNEXPLAINED CASH DEPOSIT IN THE SAVING BANK ACCOUNT HE LD WITH STATE BANK OF INDIA. PENALTY PROCEEDINGS WERE INI TIATED U/S 271(1)(C) OF THE ACT AND AN AMOUNT OF RS. 1,87,837 /- WAS CALCULATED AS PENALTY @ 100% OF TAX LEVIABLE ON THE CONCEALED INCOME OF RS.5,92,303/- (UNEXPLAINED CASH RAVI A S SATNAM ITA 361/IND/2010 3 RS.5,26,976/- & GROSS PROFIT RS.65,326/- ON UNDISCL OSED SALES. 3. AGGRIEVED, THE ASSESSEE PREFERRED APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) AGAINST PENALTY IMPOSED BUT FAILED TO SUCCEED. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. . 4. DURING THE COURSE OF HEARING, IT WAS INQUIRED BY TH E BENCH ABOUT THE STATUS OF QUANTUM ADDITION TO WHICH THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE IS SUE OF QUANTUM ADDITION IS PENDING FOR ADJUDICATION BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) AND THE OUTCOME IS AWAITED. THE LEARNED DR ALSO CONFIRMED THE INFORMATION GIVEN BY THE LEARNED COUNSEL FOR THE ASSESSEE. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD PLACED BEFORE US. THE ASSESSEE IS IN APPEAL CHALLENGING THE FINDING OF THE COMMISSIONER OF INCOM E TAX RAVI A S SATNAM ITA 361/IND/2010 4 (APPEALS) CONFIRMING THE PENALTY IMPOSED U/S 271(1)(C ) OF THE ACT AT RS. 1,87,837/-. WE FIND THAT THE ISSUE OF QUANTUM ADDITION RELATING TO UNEXPLAINED CASH DEPOSITED AND THE ADDITION OF GROSS PROFIT ON UNDISCLOSED SALES IS STILL PENDING FOR ADJUDICATION BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS). THE FATE OF PENALTY IMPOSED U/S 271(1)(C) OF THE ACT DEPENDS A LOT ON THE FINDING OF THE COMMISSIONER OF INCOME TAX (APPEALS) ON THE QUANTUM ADDITIONS. WE ARE, THEREFORE, OF THE CONSIDERED OPIN ION THAT THE ISSUE OF PENALTY SHOULD ALSO BE SET ASIDE TO THE F ILE OF THE COMMISSIONER OF INCOME TAX (APPEALS). WE ACCORDIN GLY DIRECT THE COMMISSIONER OF INCOME TAX (APPEALS) TO D E NOVO ADJUDICATE THE ISSUE OF PENALTY ALONG WITH QUANTUM ISSUE. NEEDLESS TO MENTION THAT PROPER OPPORTUNITY OF BEING HEARD BE PROVIDED TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. RAVI A S SATNAM ITA 361/IND/2010 5 PRONOUNCED IN OPEN COURT ON 28 FEBRUARY, 2018. SD SD (KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER 28 TH FEBRUARY, 2018 DN/- COPY TO APPELLANT/RESPODENT/PR.CIT/CIT(A)/DR/GUAR D FILE