Harish Chand Soni, JABALPUR V. Income Tax Officer Ward(1)1, JABALPUR

ITA 4/JAB/2018

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2244 (ITAT-JABALPUR)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 15-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SANJAY MISHRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA NO. 4/JAB/2018 / ASSESSMENT YEAR : 2008-09 HARISH CHAND SONI, 565, KOTWALI WARD TAMMARHAI, JABALPUR, M.P. PAN : AZVPS 8959 C VS INCOME TAX OFFICER, WARD 1 (1), JABALPUR / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI SANJAY MISHRA, ADV. REVENUE BY : SHRI PD CHOUGULE, DR / DATE OF HEARING : 13/03/2018 / DATE OF PRONOUNCEMENT: 15/03/2018 / O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER:- THIS APPEAL OF ASSESSEE FOR ASSESSMENT YEAR 2008-09 IS DIRECT ED AGAINST THE ORDER OF THE CIT(A)-I, JABALPUR DATED 29.11.2017 VID E APPEAL NO.J/CIT/A/I/JBP/ITO W-1(1)/JBP/208/2011-12, ARISING OUT OF ORD ER UNDER SECTION 271(1)(C) OF THE INCOME-TAX ACT, 1961 (HEREINAF TER REFERRED TO AS THE ACT), FRAMED ON 30.03.2011 BY THE ITO, WARD 1(1), JABALPUR. 2. ASSESSEE HAS RAISED FOUR GROUNDS OF APPEAL, BUT THE G RIEVANCE REVOLVES AROUND A SINGLE ISSUE WHICH RELATES TO PENALTY OF RS.30,000/- LEVIED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF TH E ACT AND CONFIRMED BY THE LD. CIT(A) IN LOWER APPELLATE PROCEEDINGS. 3. BRIEFLY STATED FACTS AS CULLED OUT FROM THE RECORD A RE THAT ASSESSEE FILED RETURN OF INCOME ON 21.10.2008 DECLARING INCOME AT RS.1,18,410/-. L EARNED ASSESSING OFFICER, AS PER THE INFORMATION AVAILABLE WITH HIM, OBSERVED THAT THE ASSESSEE HAS DEPOSITED CASH OF RS.27,45,300/- IN THE AXI S BANK ACCOUNT. THIS BANK ACCOUNT WAS NOT DISCLOSED IN THE REGULAR RETU RN OF INCOME; ITA NO. 4/JAB/2018 HARISH CHAND SONI VS. ITO AY : 2008-09 2 HOWEVER, DURING THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSEE HAS SHOWN INCOME FROM BUSINESS AT RS.1,27,275/- BY WAY OF REVIS ED COMPUTATION OF INCOME. HOWEVER, LEARNED ASSESSING OF FICER CALCULATED THE INCOME UNDER SECTION 44AF OF THE ACT AT RS.1,37,265/- AND ASS ESSED THE INCOME ACCORDINGLY. THE ASSESSEE DID NOT PREFER ANY AP PEAL AGAINST THE ORDER OF THE ASSESSING OFFICER. THEREAFTER, LEARNED A SSESSING OFFICER INITIATED PENALTY PROCEEDINGS FOR CONCEALMENT OF INCOM E AND LEVIED PENALTY OF RS.30,000/- UNDER SECTION 271(1)(C) OF THE ACT. 4. APPEAL OF THE ASSESSEE BEFORE THE LD. CIT(A) DID NO T BRING ANY RELIEF TO THE ASSESSEE AND THE PENALTY UNDER SECTION 271(1)(C) OF RS .30,000/- WAS CONFIRMED BY THE LD. CIT(A). NOW, THE ASSESSEE IS I N APPEAL BEFORE THE TRIBUNAL. 5. AT THE OUTSET, LEARNED COUNSEL FOR THE ASSESSEE SUB MITTED THAT IN THE NOTICE ISSUED FOR INITIATING PROCEEDINGS UNDER SECTI ON 271(1)(C) OF THE ACT, LEARNED ASSESSING OFFICER HAS NOT CLASSIFIED THAT THE P ROCEEDINGS HAVE BEEN INITIATED FOR CONCEALING PARTICULARS OF INCOME OR FOR FURNISHING INACCURATE PARTICULARS OF INCOME. TO THESE FACTS, LEARNED COUNSEL FOR THE ASSESSEE REFERRED AND RELIED UPON THE JUDGMENT OF THE HONBL E KARNATAKA HIGH COURT IN THE CASE OF CIT VS. MANJUNATHA COTTON AND GINNI NG FACTORY, REPORTED IN (2013) 359 ITR 565 (KAR). LEARNED DEPARTMENTAL R EPRESENTATIVE, ON THE OTHER HAND, SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RE CORD PLACED BEFORE US. THE ASSESSEE IS AGGRIEVED WITH THE PENALTY IMPOSED UNDER SECTION 271(1)(C) OF THE ACT AT RS.30,000/-, WHICH HAS BEEN LEVIED BY THE ASSESSING OFFICER ON THE ASSESSEE FOR NOT DECLARING THE INCOME ON THE ITA NO. 4/JAB/2018 HARISH CHAND SONI VS. ITO AY : 2008-09 3 TURNOVER CARRIED OUT THROUGH AXIS BANK. LEARNED COUNS EL HAS REFERRED AND RELIED UPON THE JUDGMENT OF THE KARNATAKA HIGH COURT I N THE CASE OF MANJUNATHA COTTON AND GINNING FACTORY (SUPRA), WHEREIN IT HAS BEEN HELD THAT IF THE PENALTY NOTICE IS ISSUED WITHOUT SPECIFYI NG THAT IT IS FOR FURNISHING OF INACCURATE PARTICULARS OF INCOME OR FOR CONCEALMENT O F PARTICULARS OF INCOME, SUCH PENALTY NOTICE IS NOT VALID. IN THE INST ANT APPEAL ALSO, FROM PERUSAL OF THE PENALTY NOTICE PLACED ON RECORD, WE OBS ERVE THAT THE ASSESSING OFFICER IS NOT CLEAR AS TO WHICH OF THE TWO LIMBS, UNDER WHICH PENALTY IS IMPOSABLE, HAS BEEN CONTRABAND OR INDICATE THAT BOTH HAVE BEEN CONTRABAND WHILE INITIATING PENALTY PROCEEDINGS. IN T HE PENALTY NOTICE AT PAGE NO.2, WHICH SAYS THAT.. HAD CONCEALED PART OF HIS INCOME OR FURNISHED INACCURATE PARTICULARS OF SUCH INCOME WE, THEREFORE, RESPECTFULLY FOLLOWING THE JUDGMENT OF THE HONBLE KARNATAKA HIGH COURT IN TH E CASE OF MANJUNATHA COTTON AND GINNING FACTORY (SUPRA), AND, IN TH E GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, ARE OF THE VIEW THAT THE LEG AL ISSUE RAISED BY THE ASSESSEE IS SQUARELY COVERED IN ITS FAVOUR BY THE JUDG MENT OF HONBLE KARNATAKA HIGH COURT IN THE CASE OF MANJUNATHA COTTON AND GI NNING FACTORY (SUPRA) AND, THEREFORE, THE IMPUGNED PENALTY OF RS.30,000/- IMPOSED BY THE ASSESSING OFFICER U/S 271(1)(C) OF THE A CT IS DELETED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 15 TH MARCH, 2018 AT JABALPUR. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER JABALPUR; DATED 15/03/ 2018 *BIT ITA NO. 4/JAB/2018 HARISH CHAND SONI VS. ITO AY : 2008-09 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, JABALPUR 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, JABALPUR