Shri Kamlesh Rathore, CHITTORGARH V. ACIT, CHITTORGARH

ITA 415/JODH/2014

• Counselvise Citation: 41523314 RSA 2014
• Duration Of Justice: 1 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-09-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 04-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MAURYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR JODHPUR BENCH, JODHPUR BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.C. GUPTA G.C. GUPTA G.C. GUPTA G.C. GUPTA, , , , HONBLE HONBLE HONBLE HONBLE VICE VICE VICE VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI R.C. SHARMA R.C. SHARMA R.C. SHARMA R.C. SHARMA, , , , HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT HON'BLE ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 415/JODH/2014 415/JODH/2014 415/JODH/2014 415/JODH/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2006 2006 2006 2006 - -- - 07 0707 07 SHRI KAMLESH RATHORE, SHRI KAMLESH RATHORE, SHRI KAMLESH RATHORE, SHRI KAMLESH RATHORE, S/O SHRI KANTI LAL RATHOR S/O SHRI KANTI LAL RATHOR S/O SHRI KANTI LAL RATHOR S/O SHRI KANTI LAL RATHORE, E,E, E, 87, SHASTRI NAGAR, 87, SHASTRI NAGAR, 87, SHASTRI NAGAR, 87, SHASTRI NAGAR, DISTRICT CHITTORGARH. DISTRICT CHITTORGARH. DISTRICT CHITTORGARH. DISTRICT CHITTORGARH. PAN : AACPR3123P. PAN : AACPR3123P. PAN : AACPR3123P. PAN : AACPR3123P. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CHITTORGARH, CIRCLE CHITTORGARH, CIRCLE CHITTORGARH, CIRCLE CHITTORGARH, RAJASTHAN. RAJASTHAN. RAJASTHAN. RAJASTHAN. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. RESPONDENT BY : SHRI S.L. MAURYA, D.R. DATE OF HEARING : 03.09.2015 03.09.2015 03.09.2015 03.09.2015 DATE OF PRONOUNCEMENT: 04. 04. 04. 04.0 00 09.2015 9.2015 9.2015 9.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT PER G.C. GUPTA, VICE PRESIDENT : :: : THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2006-07 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), CENTR AL, JAIPUR DATED 12 TH MAY, 2014. 2. AT THE TIME OF HEARING OF THE APPEAL, NONE APPEA RED ON BEHALF OF THE ASSESSEE-APPELLANT. THE APPLICATION OF THE ASS ESSEE FOR ADJOURNMENT OF THE CASE WAS REJECTED BY THE BENCH. THEREFORE, THE APPEAL OF THE ASSESSEE IS BEING DECIDED EX PARTE QU A THE ASSESSEE- APPELLANT ON MERITS AFTER HEARING THE LEARNED DR. ITA-415/JODH/2014 2 3. THE ONLY GROUND OF APPEAL OF THE ASSESSEE IS AS UNDER:- ON THE FACTS & CIRCUMSTANCES OF THE CASE THE HON. COMMISSIONER OF INCOME TAX, (APPEAL) CENTRAL JAIPUR HAS GROSSLY ERRED IN LAW WHILE SUSTAINING THE PENAL TY IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT OF RS.65912/-. 4. LEARNED DR HAS RELIED ON THE ORDER OF THE ASSESS ING OFFICER AND THE LEARNED CIT(A). 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D DR AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). WE FIND THAT PENALTY IN THIS CASE U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 WAS SUSTAINED BY THE LEARNED CIT(A) AMOUNTING TO `6 5,912/- ON THE PLEA THAT ADDITION ON ACCOUNT OF SHORTAGE OF STOCK WAS MADE PURSUANT TO SURVEY PROCEEDINGS AT THE PREMISES OF THE ASSESS EE AND HAD THESE PROCEEDINGS NOT BEEN INITIATED, THIS INCOME WOULD N OT HAVE BEEN DISCLOSED FOR THE PURPOSE OF TAXATION. WE FIND THA T THIS APPROACH OF THE LEARNED CIT(A) WHILE DECIDING THE VALIDITY OF IMPOS ITION OF PENALTY U/S 271(1)(C) OF THE ACT IS NOT SUSTAINABLE IN LAW. TH E ASSESSEE HAS FILED AN EXPLANATION AND WHICH COULD NOT BE SAID TO BE NOT B ONA FIDE. THE ASSESSEE HAS EXPLAINED THAT THE PHYSICAL STOCK OF S LABS OF MARBLE OF M/S RANAKPUR MARBLE PVT.LTD. AND M/S S.K. MARBLES ( PROPRIETARY CONCERN OF THE ASSESSEE), WERE NOT SEGREGATED BY TH E REVENUE DEPARTMENT. IN OUR VIEW, THE FACTS OF THE CASE MAY JUSTIFY THE ADDITION MADE IN THE QUANTUM CASE OF THE ASSESSEE TO BE SUST AINED BUT DO NOT JUSTIFY THE IMPOSITION OF PENALTY U/S 271(1)(C) OF THE ACT. ACCORDINGLY, SINCE THE PENALTY U/S 271(1)(C) OF THE ACT HAS BEEN LEVIED MERELY ON THE BASIS OF ADDITION HAVING BEEN SUSTAINED IN THE QUANTUM APPEAL OF THE ASSESSEE AND ON PROBABILITIES, WE ARE UNABLE TO SUSTAIN THE PENALTY ITA-415/JODH/2014 3 IMPOSED U/S 271(1)(C) OF THE ACT, WHICH IS ACCORDIN GLY CANCELLED AND THE GROUND OF APPEAL OF THE ASSESSEE IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 04.09.2015 . SD/- SD/- ( (( ( R.C. SHARMA R.C. SHARMA R.C. SHARMA R.C. SHARMA ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : SHRI KAMLESH RATHORE, SHRI KAMLESH RATHORE, SHRI KAMLESH RATHORE, SHRI KAMLESH RATHORE, S/O SHRI KANTI LAL RATHORE, S/O SHRI KANTI LAL RATHORE, S/O SHRI KANTI LAL RATHORE, S/O SHRI KANTI LAL RATHORE, 87, SHASTRI NAGAR, DISTRICT CHITTORGARH. 87, SHASTRI NAGAR, DISTRICT CHITTORGARH. 87, SHASTRI NAGAR, DISTRICT CHITTORGARH. 87, SHASTRI NAGAR, DISTRICT CHITTORGARH. 2. RESPONDENT : ASSISTANT COMMI ASSISTANT COMMI ASSISTANT COMMI ASSISTANT COMMISSIONER OF INCOME TAX, SSIONER OF INCOME TAX, SSIONER OF INCOME TAX, SSIONER OF INCOME TAX, CIRCLE CHITTORGARH, RAJASTHAN. CIRCLE CHITTORGARH, RAJASTHAN. CIRCLE CHITTORGARH, RAJASTHAN. CIRCLE CHITTORGARH, RAJASTHAN. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR