DCIT, New Delhi V. Sh. Raminder Singh Bedi, Gurgaon

ITA 4123/DEL/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8887 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 22-12-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 05-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAI
• Assessee Lawyers: K C SINGHAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SHRI N.K. SAINI AND SHRI I.C. SUDHIR ITA NO. 4123/DEL/2013 ASSESSMENT YEAR: 2006-07 DEPUTY CIT VS. RAMINDER SINGH BEDI, CIRCLE 48(1), AG-61, NIRVANA COUNTRY, NEW DELHI. SECTOR-60, GURGAON (HR.) (PAN: AHOPB3502B) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI VIKRAM S AHAI, SR. DR RESPONDENT BY: SHRI K.C. SINGHA L, ADV. DATE OF HEARING : 22.12.2014 DATE OF PRONOUNCEMENT: :02.2015 ORDER PER I.C. SUDHIR: JUDICIAL MEMBER THE REVENUE HAS QUESTIONED FIRST APPELLATE ORDER WH EREBY THE LEARNED CIT(APPEALS) HAS DELETED THE PENALTY OF RS.5,48,690 LEVIED UNDER SEC. 271(1)(C) OF THE INCOME-TAX ACT, 1961 ON SEVERAL GR OUNDS. 2. HEARD AND CONSIDERED THE ARGUMENTS ADVANCED BY T HE PARTIES IN VIEW OF ORDERS OF THE AUTHORITIES BELOW, MATERIAL AVAILA BLE ON RECORD AND THE DECISIONS RELIED UPON. 2 3. HAVING GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW, WE FIND THAT THE ASSESSEE WAS ABLE TO SHOW BONA FIDE REASON FOR NOT SHOWING THE INCOME EARNED ON THE SALE OF SHARES AND THE EQUITY ESOP IN ITS RETURN OF INCOME FILED FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. THE AS SESSEE HAD SOLD 4500 NUMBERS OF EQUITY ESOP AND 1272 NUMBERS OF OTHER SH ARES. NECESSARY DETAILS IN THIS REGARD SHOWING CAPITAL GAIN AMOUNTI NG TO RS.16,02,644 WAS SUBMITTED. THE SAID FACTS HAVE BEEN DULY REPORTED I N THE ASSESSMENT ORDER UNDER PARA 5. THE ASSESSEE SUBMITTED THAT HE DISCUS SED WITH SOME CONSULTANTS ABOUT THE TRANSACTION ON THE BASIS OF W HICH HE WAS OF THE BONA FIDE OPINION THAT SHARES WERE LISTED IN USA AND ALS O SOLD IN USA ON WHICH NECESSARY TAX HAD BEEN PAID TO US GOVERNMENT ACCORD INGLY SAME CAPITAL GAIN IS NOT LIABLE TO TAX IN INDIA AGAIN. THE ASSES SEE ALSO FILED TRULY THE INFORMATION ABOUT SALE OF ESOP WITHOUT HIDING. IT I S ALSO WORTH NOTING THAT THE REVENUE HAD THE INFORMATION ONLY ABOUT THE GAIN ARISING ON THE SALE OF SHARES FOR RS.8,12,080 WHEREAS THE ASSESSEE BEING A HONEST TAX PAYERS FURNISHED THE INFORMATION FOR CAPITAL GAIN FOR RS.1 6,02,644. THIS FACT HAS BEEN DULY RECORDED IN THE ASSESSMENT ORDER. KEEPING ALL THE ABOVE ASPECTS IN MIND, WE ARE OF THE VIEW THAT THE LEARNED CIT(APPEA LS) HAD RIGHTY DELETED THE PENALTY ON THE BASIS THAT THERE WAS BONA FIDE M ISTAKE ON THE PART OF THE ASSESSEE WHICH CANNOT BE TERMED AS CONCEALMENT OF I NCOME OR FURNISHING 3 INACCURATE PARTICULARS THEREOF TO ATTRACT PENAL PRO VISIONS UNDER SEC. 271(1)(C) OF THE ACT. FOR A READY REFERENCE, PARA NO.4 OF THE FIRST APPELLATE ORDER IS BEING REPRODUCED: 4. I HAVE PERUSED THE PENALTY ORDER, GROUNDS OF A PPEAL, WRITTEN SUBMISSIONS AND DISCUSSED THE MATTER WITH THE AR OF THE APPELLANT VERY CAREFULLY. DURING THE YEAR UNDER CONSIDERATION THE APPELLANT GOT SOME ESOP AND OTHER SHARES FROM THE EMPLOYER GROUP COMPANY, LISTED IN USA, WHICH WAS SOLD IN USA. NECESSARY US TAX RETURN RELATING TO THAT INCOME WAS FILED IN USA. THE APPEL LANT WAS UNDER THE BONA FIDE BELIEF THAT SHARE WAS LISTED IN USA AND A PPLICABLE US TAX HAD BEEN DEPOSITED SO THE SAME INCOME IS NOT LEVIAB LE IN INDIA. SINCE IT IS A BONA FIDE MISTAKE BY THE APPELLANT AND HE H AS NOT CONCEALED ANY INCOME OR FURNISHED ANY INACCURATE PARTICULARS OF H IS INCOME, THE PENALTY IMPOSED BY THE A.O. U/S. 271(1)(C) IS HEREB Y DELETED. 4. IN VIEW OF ABOVE DISCUSSION, WE FIND THAT THERE IS NO INFIRMITY IN THE FIRST APPELLATE ORDER ON THE ISSUE OF DELETION OF T HE PENALTY IN QUESTION. THE SAME IS UPHELD. THE RELATED GROUNDS ARE ACCORDINGLY REJECTED. 5. IN RESULT, THE APPEAL IS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON .0 2.2015 ( N.K. SAINI ) ( I.C. SUDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: /02/2015 MOHAN LAL 4 COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR