Smt Bakulaben B Patel, Anand V. The Dy CIT., Anand Circle, Anand

ITA 3661/AHD/2007

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57127 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 17-01-2012
• Assessment Year: 1995-1996
• Appeal Filed On: 10-09-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K SRIVASTAVASR
• Assessee Lawyers: SHRUI TUSHAR HEMANI
• Keywords: Income from undisclosed sources
• Section: 27

Judgement Text

ITA NO.3661-366 2/AHD/2007 ASSESSMENT YEAR 1995-96. 1 IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, A HMEDABAD (BEFORE SHRI G.C. GUPTA,VICE PRESIDENT AND SHRI B. R. BASKARAN,AM) I.T.A. NO. 36 61 AND 3662/AHD/2007 (ASSESSMENT YEAR: 1995-1996) SMT. BAKULABEN B. PATEL, C/O. LAXMI AUTOCENTER, M. B. PATEL SCIENCE COLLEGE, ANAND. (APPELLANT) VS. DEPUTY COMMISSIONER OF INCOME TAX, ANAND CIRCLE, (RESPONDENT) APPELLANT BY : SHRUI TUSHAR HEMANI. RESPONDENT BY : SHRI P.K.SRIVASTAVA,SR.D.R. ( )/ ORDER DATE OF HEARING : 17-1-2012. DATE OF PRONOUNCEMENT : 25-1-2012 PER: SHRI B.R. BASKARAN,ACCOUNTANT MEMBER. THESE TWO APPEALS FILED BY THE ASSESSEE ARE DIRECT ED AGAINST THE SEPARATE ORDERS PASSED BY LD CIT (A)-IV, BARODA AND BOTH THE APPEALS RELATE TO THE ASSESSMENT YEAR 1995-96. THE ASSESSEE IS ASSAILING THE DECISION OF LD CIT (A) IN CONFIRMING/LEVYING PENALTY U/S 271(1)(C) OF THE ACT . 2. THE FACTS RELATING TO THE SAME ARE STATED IN BRIEF. THE DEPARTMENT CARRIED OUT SEARCH PROCEEDINGS IN THE HANDS OF ONE ANGADIA MR . AMRATHBHAI SOMABHAI, BARODA, DURING THE COURSE OF WHICH, IT WAS FOUND TH AT A SUM OF RS.6,07,000/- WAS DELIVERED TO THE ASSESSEE HEREIN. CONSEQUENT THERE TO, AN ENQUIRY WAS MADE U/S 131(1A) OF THE ACT WITH THE ASSESSEE, WHERE IN SHE ACCEPTED THAT THE SAID AMOUNT REPRESENTS HER UNACCOUNTED INCOME. DURING THE COUR SE OF ASSESSMENT PROCEEDING, ITA NO.3661-366 2/AHD/2007 ASSESSMENT YEAR 1995-96. 2 THE ASSESSEE EXPLAINED THAT A SUM OF RS.2.25 LAKHS REPRESENTS AMOUNT RECEIVED FROM HER CLOSE RELATIVES AND FURNISHED ALL THE DETA ILS WITH REGARD TO THE SAME. HOWEVER, THE AO WAS NOT CONVINCED WITH THE SAME AND ADDED THE AMOUNT OF RS2.25 LAKHS TO THE INCOME OF THE ASSESSEE. WITH R EGARD THE REMAINING AMOUNT OF RS.3.82 LAKHS, THE ASSESSEE SUBMITTED THAT SHE HAS DECLARED THE SAME UNDER VDIS SCHEME, 1997 AND ALSO PRODUCED THE RELEVANT CERTIFI CATE. ACCORDINGLY, THE AO DID NOT CONSIDER THE SAME AS THE INCOME OF THE ASSESSEE . THE APPEAL FILED BY THE ASSESSEE BEFORE LD CIT (A) AGAINST THE ADDITION OF RS.2.25 LAKHS WAS DISMISSED. 3. HOWEVER, IN THE APPELLATE PROCEEDINGS, THE LD CIT (A) NOTICED THAT THE ASSESSEE HAS DISCLOSED THE AMOUNT OF RS.3.82 LAKHS UNDER VDIS SCHEME, IN VIOLATION OF THE CONDITIONS PRESCRIBED THEREIN. ACC ORDINGLY HE ISSUED AN ENHANCEMENT NOTICE TO THE ASSESSEE AND ENHANCED THE INCOME OF THE ASSESSEE BY RS.3.82 LAKHS. 4. THE ASSESSEE ACCEPTED THE ORDERS OF LD CIT ( A) AND DID NOT PREFER APPEAL BEFORE THE TRIBUNAL. THE PENALTY LEVIED BY THE AO U /S 271(1)(C) OF THE ACT ON RS.2.25 LAKHS WAS UPHELD BY THE LD CIT (A). THE FI RST APPELLATE AUTHORITY ALSO INITIATED PENALTY PROCEEDINGS IN RESPECT OF RS.3.82 LAKHS AND LEVIED PENALTY ON IT U/S 271(1)(C) OF THE ACT. AGGRIEVED BY BOTH THE OR DERS OF LD CIT (A), THE ASSESSEE IS IN APPEAL BEFORE US. 5. THE LD A.R SUBMITTED THAT THE ASSESSEE HAS F URNISHED CONFIRMATION LETTERS FROM HER RELATIVES IN SUPPORT OF HER CONTENTION THA T A SUM OF RS.2.25 LAKHS WAS RECEIVED FROM THEM. THE ASSESSEE ALSO PRODUCED EVID ENCES TO SHOW THEIR RESPECTIVE SOURCES INCLUDING THEIR RESPECTIVE INCOME TAX RETUR NS AND BANK PASS BOOKS. THE LD A.R FURTHER SUBMITTED THAT NONE OF THE SAID RELATIV ES WAS FOUND TO BE HAVING INADEQUATE MEANS. ACCORDINGLY THE LD A.R CONTENDED THAT THE PENALTY COULD NOT ITA NO.3661-366 2/AHD/2007 ASSESSMENT YEAR 1995-96. 3 BE LEVIED ON THE ADDITION MADE IN THE ASSESSMENT PR OCEEDINGS BY REJECTING THE EXPLANATIONS OF THE ASSESSEE. WITH REGARD TO THE A MOUNT OF RS.3.82 LAKHS, THE LD A.R SUBMITTED THAT THE SAID ADDITION WAS MADE BY TH E LD CIT (A) ONLY FOR THE TECHNICAL DEFAULT MADE BY THE ASSESSEE IN RESPECT O F RETURN FILED UNDER VDIS SCHEME. ON THE CONTRARY, THE LD D.R STOOD BY THE O RDERS OF LD CIT (A). 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND CARE FULLY PERUSED THE RECORD. ON A CAREFUL CONSIDERATION OF THE FACTS OF THE CASE, WE FIND MERIT IN THE CONTENTIONS OF THE ASSESSEE. WITH REGARD TO THE ADDITION OF RS.2. 25 LAKHS, IT WAS SUBMITTED THAT THE ASSESSEE HAS FURNISHED ALL THE DETAILS THAT WERE AV AILABLE WITH HIM. THE AO HAS MADE THE SAID ADDITION, AS HE WAS NOT SATISFIED WIT H THE SAID EXPLANATIONS. IN ANY CASE, THE SAID EXPLANATIONS WERE NOT FOUND TO BE FA LSE EXPLANATIONS. WITH REGARD TO THE ADDITION OF RS.3.82 LAKHS, THE ASSESSEE SOUGHT DEDUCTION ONLY FOR THE REASON THAT SHE HAS DECLARED THE SAME UNDER VDIS SCHEME, W HICH WAS LATER FOUND TO BE IN VIOLATION OF THE CONDITIONS PRESCRIBED UNDER THE SA ID SCHEME. THE EXPLANATION OF THE ASSESSEE WITH REGARD TO THIS ADDITION ALSO APPE ARS TO US TO BE A BONAFIDE ONE. ACCORDINGLY, WE ARE OF THE VIEW THAT PENALTY U/S 27 1(1)(C) WILL NOT LIE UPON THESE TWO ADDITIONS. ACCORDINGLY, WE REVERSE BOTH THE OR DERS OF LD CIT(A) AND DIRECT THE AO TO DELETE THE IMPUGNED PENALTIES. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 25 - 01 - 2012. SD/- SD/- (G. C. GUPTA) (B.R. BASKARAN) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD. ITA NO.3661-366 2/AHD/2007 ASSESSMENT YEAR 1995-96. 4 S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)-IV, BARODA. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD. 1.DATE OF DICTATION 17 - 1 -2012 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 17 / 1 / 2012 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S 25 - 1 -2012. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 25 - 01 -2012 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 25 -01 -2012 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2 5 - 01 -2012. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..