Shri Shantilal Rathore, CHITTORGARH V. ACIT, CHITTORGARH

ITA 416/JODH/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99635 (ITAT-JODHPUR)
• 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 . .. . 416/JODH/2014 416/JODH/2014 416/JODH/2014 416/JODH/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2006 2006 2006 2006 - -- - 07 0707 07 SHRI SHANTILAL RATHORE, SHRI SHANTILAL RATHORE, SHRI SHANTILAL RATHORE, SHRI SHANTILAL RATHORE, 87, SHASTRI NAGAR, 87, SHASTRI NAGAR, 87, SHASTRI NAGAR, 87, SHASTRI NAGAR, DIST DIST DIST DISTRICT CHITTORGARH. RICT CHITTORGARH. RICT CHITTORGARH. RICT CHITTORGARH. PAN : ABVPR9862M. PAN : ABVPR9862M. PAN : ABVPR9862M. PAN : ABVPR9862M. 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 : 03.09.2 03.09.2 03.09.2 03.09.2015 015 015 015 DATE OF PRONOUNCEMENT: 04.09.2015 04.09.2015 04.09.2015 04.09.2015 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 5 TH JUNE, 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. 3. THE ONLY GROUND OF APPEAL OF THE ASSESSEE IS AS UNDER:- ITA-416/JODH/2014 2 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.34181/-. 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 THE ONLY ISSUE IN THIS APPEAL OF THE ASSE SSEE IS REGARDING VALIDITY OF PENALTY IMPOSED U/S 271(1)(C) OF THE IN COME-TAX ACT, 1961 AMOUNTING TO `34,181/-. WE FIND THAT THERE WAS A S EARCH OPERATION AT THE RESIDENTIAL AND BUSINESS PREMISES OF THE ASSESS EE ON 09.11.2005. DURING THE COURSE OF SEARCH, GOLD JEWELLERY AND SIL VER ORNAMENTS WERE FOUND AND, THEREAFTER, THE ASSESSING OFFICER MADE A N ADDITION OF `12,14,600/- U/S 69A OF THE ACT ON ACCOUNT OF UNDIS CLOSED GOLD JEWELLERY. LEARNED CIT(A), AFTER CONSIDERING THE F ACTS OF THE CASE, SUBSTANTIALLY ALLOWED THE APPEAL OF THE ASSESSEE AN D THE ADDITION OF `11,00,666/- WAS DELETED AND ONLY ADDITION OF THE V ALUE OF 202.86 GMS. WHICH COMES TO `1,13,933/- WAS SUSTAINED. THE REVE NUES APPEAL AGAINST THE ORDER OF LEARNED CIT(A) WAS DISMISSED B Y THE TRIBUNAL VIDE THEIR ORDER DATED 18.10.2010 IN ITA NO.178/JP/2009. WE FIND THAT THIS IS A CASE WHERE THE PLEA OF THE ASSESSEE REGARDING THE SOURCE OF THE GOLD ORNAMENTS AND SILVER ORNAMENTS WAS ACCEPTED BY THE LEARNED CIT(A) AND THE ORDER OF THE CIT(A) HAS ALREADY BEEN UPHELD BY THE TRIBUNAL AND REVENUES APPEAL HAS BEEN DISMISSED. MERELY BECAUSE SOME ADDITION ON ACCOUNT OF 202.86 GMS. OF GOLD JEW ELLERY HAS BEEN SUSTAINED IN THE QUANTUM CASE OF THE ASSESSEE ON PR EPONDERANCE OF PROBABILITIES, COULD NOT TAKE PLACE OF PROOF AND WO ULD NOT JUSTIFY THE IMPOSITION OF PENALTY FOR CONCEALMENT OF INCOME. I T IS WELL-SETTLED THAT ITA-416/JODH/2014 3 THE PARAMETERS OF JUDGING THE VALIDITY OF ADDITION IN ASSESSMENT CASE OF THE ASSESSEE AND THE VALIDITY OF PENALTY ARE TOT ALLY DIFFERENT. IN THE FACTS OF THE CASE, MERELY BECAUSE THE ADDITION HAS BEEN SUSTAINED OF A SMALL PORTION OF THE ADDITION MADE BY THE ASSESSING OFFICER, THE PENALTY IMPOSED U/S 271(1)(C) OF THE ACT COULD NOT BE SUSTAINED AND, PARTICULARLY SO, WHEN NO INCRIMINATING MATERIAL COU LD BE PRODUCED BY THE REVENUE. ACCORDINGLY, THE PENALTY IMPOSED U/S 271(1)(C) OF THE ACT IS CANCELLED AND THE GROUND OF APPEAL OF THE AS SESSEE 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 SHANTILAL RATHORE, SHRI SHANTILAL RATHORE, SHRI SHANTILAL RATHORE, SHRI SHANTILAL RATHORE, 87, SHASTRI 87, SHASTRI 87, SHASTRI 87, SHASTRI NAGAR, DISTRICT CHITTORGARH. NAGAR, DISTRICT CHITTORGARH. NAGAR, DISTRICT CHITTORGARH. NAGAR, DISTRICT CHITTORGARH. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME T AX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER 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