Vinita Jain, Ghaziabad V. DCIT, Ghaziabad

ITA 3688/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3731 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 21-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHMIA NEB
• Keywords: Search and seizure; Corroborative evidences
• Section: 143(3); 153A; 132

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI H.S.SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 3674 TO 3677 AND 36 79 TO 3 6 8 1 /DEL/2016 (ASSESSMENT YEAR: 2005 - 06 TO 2011 - 12 ) NEERAJ JAIN, 12/40, RAJ NAGAR, GHAZIABAD PAN:AAIPJ3549D VS. DCIT, CENTRAL CIRCLE GHAZIABAD (APPELLANT) (RESPONDENT) ITA NO. 3682 TO 3688/DEL/2016 (ASSESSMENT YEAR: 2005 - 06 TO 2011 - 12 ) MRS. VINITA JAIN, 12/40, RAJ NAGAR, GHAZIABAD PAN:AAPPJ6493B VS. DCIT, CENTRAL CIRCLE GHAZIABAD (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY: MS. ASHMIA NEB, SR. DR DATE OF HEARING 31/01/2018 & 1/2/2018 DATE OF PRONOUNCEMENT / 02/2018 O R D E R PER BENCH 1. THESE ARE THE 14 APPEALS FILED BY THE TWO ASSESSES AGAINST THE ORDER OF CIT(A) - IV, KANPUR FOR ASSESSMENT YEAR 2005 - 06 TO 2011 - 12 DATED 10.02.2016 CONFIRMING THE PENALTY LEVIED U/S 271(1)(B) OF THE INCOME TAX ACT OF RS. 10000/ - FOR EACH ASSESSMENT YEAR. 2. THE ASSESSEE THOUGH HAS RAISED THREE GROUNDS OF APPEAL IDENTICA LL Y WORDED FOR BOTH THE ASSESSES IN ALL THESE APPEALS BUT THE REAL GRIEVANCE IS CONFIRMATION OF PENALTY OF RS. 10,000/ - FOR EACH ASSESSMENT YEAR IN CASE OF BOTH THESE ASSESSES. 3. BRIEF FACTS OF THE CASE ARE THOSE SEARCH AND SEIZURE OPERATION U/S 132 OF THE ACT WERE CARRIED ON 09.09.2010 AT OFFICE AND RESIDENTIAL PREMISES OF ITA NO. 3674 TO 3681/DEL/2016 ITA NO. 3682 TO 3688/DEL/2016 (A Y : 2005 - 06 TO 2011 - 12) SHRI MANISH JAIN AND OTHERS. DURING THE COURSE OF SEARCH IT WAS FOUND THAT THESE PERSONS ALONG WITH THEIR ASSOCIATES HAVE MADE HEAVY CASH TRANSACTION FOR LAST SO MANY YEARS IN DIFFERENT F IRMS AND CONCERNS WHICH ARE MORE THAN 75 OPERATED FROM 14 - 15, KONARK, RDC, RAJNAGAR, GHAZIABAD AND VARIOUS OTHER FAKE ADDRESSES WHERE APPROXIMATELY 25 CONCERNS ARE SHOWN RUNNING BUT NONE OF THEM EXISTED. THE MODUS OPERANDI OF THE ASSESSEE AS NOTED BY THE L D ASSESSING OFFICER IS THAT MR. MANISH JAIN AND MR. RAKESH JAIN WERE DEPOSITING HEAVY CASH ON DAILY BASIS IN THE BANK ACCOUNT OF ALL THESE BOGUS CONCERNS. BOTH THE ASSESSEE ARE PART OF THIS GROUP. 4. CONSEQUENT TO SEARCH NOTICE U/S 153A WAS ISSUED . R ETURN O F INCOME WAS FILED ON 30.3.2012 SHOWING INCOME OF RS. 120000 / - IN CASE OF SHRI NEERAJ JAIN AND BY MRS VINITA JAIN ON 26.7.2012 FOR RS. 112350/ - FOR THE SAME YEAR ASSESSMENT YEAR. SUBSEQUENTLY, THE ASSESSMENT U/S 143(3) READ WITH SECTION 153A ( B) WA S PASSED ON 31.03.2013 IN CASE OF BOTH THE ASSESSES AT RETURNED INCOME. 5. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, TWO NOTICES WERE ISSUED TO THE ASSESSEE ON 17.09.2012, WHICH WAS COMPLIED ON 09.10.2012, AND ANOTHER NOTICE DATED 30.11.2012, WHICH WAS CO MPLIED ON 10.12.2012. THEREFORE, THE LD ASSESSING OFFICER ISSUED PENALTY NOTICE U/S 271(1)(B) ON 15.04.2013 FIXING DATE OF HEARING ON 30.04.2013 WHICH REMAINED UNCOMPLIED WITH. SUBSEQUENTLY, ANOTHER NOTICE WAS ISSUED FIXING DATE OF HEARING ON 04.09.2013. O N THE APPOINTED DATE, IT WAS SUBMITTED THAT THE COUNSEL WHO WAS REPRESENTING THE CASE OF THE ASSESSEE COULD NOT REACH THE OFFICE OF THE LD ASSESSING OFFICER DUE TO BREAK DOWN IN HIS CAR. THE LD ASSESSING OFFICER REJECTED THE EXPLANATION OF THE ASSESSEE AND LEVIED THE PENALTY OF RS. 10000/ - FOR EACH OF THE ASSESSMENT YEAR FOR FAILURE TO ATTEND ON 10.12.2012. 6. AGAINST THE ORDER , THE ASSESSEE PREFERRED APPEAL BEFORE THE LD CIT ( A) WHO CONFIRMED THE SAME HOLDING THAT DECISION OF THE LUCKNOW BENCH OF ITAT IN CAS E OF KRISHNA BIHARI AGGARWAL VS. DCIT ITA NO. 296/LKW/2015 DATED 26.06.2015 SQUARELY APPLIED TO THE FACTS OF THE CASE. THE LD CIT ( A) FURTHER HELD THAT THE ASSESSEE HAS NOT SHOWN ANY REGARD TO THE STATUTORY ITA NO. 3674 TO 3681/DEL/2016 ITA NO. 3682 TO 3688/DEL/2016 (A Y : 2005 - 06 TO 2011 - 12) NOTICES ISSUED BY THE LD AO. HE SUSTAINED THE PEN ALTY. THEREFORE, THE ASSESSEE IS IN APPEAL BEFORE US. 7. DESPITE NOTICE ISSUED FIXING THE DATE OF HEARING ON 01/02/2018 , NONE APPEARED ON BEHALF OF THE ASSESSEE. THEREFORE, THE ISSUE IS DECIDED ON MERITS AS PER INFORMATION AVAILABLE ON RECORD. 8. THE LD DEPARTMENTAL REPRESENTATIVE VEHEMENTLY SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. SHE SUBMITTED THAT ASSESSEE IS ENGAGED IN PROVIDING FAKE ENTRIES AND THEREFORE, WILLFULLY DID NOT APPEAR BEFORE THE LD ASSESSING OFFICER. SHE FURTHER SUBMITTED THA T IN PARA NO. 1 AND 2 OF THE ASSESSMENT ORDER SHOWS THE CONDUCT OF THE ASSESSEE. HE THEREFORE, SUBMITTED THAT THE ABOVE PENALTY MAY BE CONFIRMED. 9. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES. THE LD CIT ( A) HAS HELD THAT THE SUBMISSION OF THE APPELLANT DOES NOT HAVE ANY SUPPORTING EVIDENCE AS TO WHY THE NOTICES WERE NOT COMPLIED WITH. HE FURTHER HELD THAT NO REASONS WERE GIVEN BEFORE THE LD ASSESSING OFFICER WHY THE PENALTY PROCEEDINGS SHOULD BE DROP. THE LD CIT ( A) RELIED UPON THE ORDERS OF COORDINATE BENCH IN CASE OF SHRI KRISHNA BIHARI AGGARWAL (SUPRA) AND CONFIRMED THE PENALTY. ON PERUSAL OF THE SAME, WE DO NOT FIND ANY REASON TO UPSET THE ORDERS OF THE LOWER AUTHORITIES. IN THE RESULT THE ORDER OF THE LD ASSESSING OFFICER LEVYING PENALTY U/S 271(1)(B) OF THE ACT FOR ALL THE 7 YEARS IN CASE OF BOTH THE ASSESSES AND THE ORDER OF THE LD CIT(A) IN CONFIRMING THE SAME ARE UPHELD. 10. IN THE RESULT ALL, THE SEVEN APPEALS OF EACH OF THE ASSESSEE ARE DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON / 02/2018 . ( H.S. SIDHU ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: / 02/2018 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT ITA NO. 3674 TO 3681/DEL/2016 ITA NO. 3682 TO 3688/DEL/2016 (A Y : 2005 - 06 TO 2011 - 12) 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI ITA NO. 3674 TO 3681/DEL/2016 ITA NO. 3682 TO 3688/DEL/2016 (A Y : 2005 - 06 TO 2011 - 12) DATE 1. DRAFT DICTATED ON PS 2. DRAFT PLACED BEFORE AUTHOR PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.