DCIT, New Delhi V. Sh. Surinder Kumar Puri, New Delhi

ITA 4169/DEL/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0106 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 29-06-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 08-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S MINHAS ACIT
• Section: 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G, NEW DELHI) BEFORE SHRI D. MANMOHAN, HONBLE VICE PRESIDENT AND SHRI N. K. SAINI, ACCOUNTANT MEMBER I.T.A. NO.4169 /DEL/2013 ASSESSMENT YEAR : 2007-08 DCIT, CIRCLE 41(1), VS. SH. SURINDER KUMAR PURI, NEW DELHI A-1/144, SAFDARJUNG ENCLAVE, NEW DELHI. GIR / PAN:AALPP1879M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J.S. MINHAS, ACIT, DR RESPONDENT BY : NONE DATE OF HEARING : 29.06.2015 DATE OF PRONOUNCEMENT : 29.06.2015 ORDER PER D. MANMOHAN, VP: THIS APPEAL IS FILED AT THE INSTANCE OF REVENUE AN D IT PERTAINS TO ASSESSMENT YEAR 2007-08. PENALTY OF RS.6,92,777/- U/S 271(1)(C) OF THE ACT HAVING BEEN CANCELLED BY LD. CIT(A), THE REVENU E IS IN APPEAL BEFORE US. 2. THOUGH, NOTICES WERE SENT TO THE ASSESSEE AT THE ADDRESS GIVEN IN FORM 36, NONE APPEARED ON BEHALF OF THE ASSESSEE. WE, T HEREFORE, PROCEED TO DISPOSE OF THE APPEAL EX-PARTE QUA ASSESSEE. 3. WE HAVE HEAD LD. D.R. AND CAREFULLY PERUSED THE RECORDS. THE FACTS NECESSARY FOR THE DISPOSAL OF THE APPEAL ARE STATED IN BRIEF. THE ASSESSEE IS A RETIRED ARMY OFFICER. DURING THE YEAR UNDER CONSID ERATION, THE ASSESSEE SOLD ITA NO.4169/DEL/2013 2 RESIDENTIAL HOUSE AND THE SALE PROCEEDS WERE DEPOSI TED SO AS TO AVAIL EXEMPTION U/S 54 OF THE ACT. THOUGH A SUM OF RS.33 .16 LACS WAS DEPOSITED IN TERM DEPOSIT, THE A.O. NOTICED THAT THE ASSESSEE DID NOT INVEST UNDER THE CAPITAL GAIN ACCOUNT SCHEME SO AS TO AVAIL EXEMPTIO N U/S 54 OF THE ACT. ACCORDINGLY, THE EXEMPTION WAS DENIED IN THE QUANTU M PROCEEDINGS AND PENALTY, EQUIVALENT TO 100% OF TAX SOUGH TO BE EVAD E, WAS LEVIED U/S 271(1)(C) OF THE ACT. 4. AGGRIEVED, THE ASSESSEE CONTENDED BEFORE LD. CIT (A) THAT HE A.O. WAS WRONG IN DENYING EXEMPTION U/S 54 OF THE ACT AN D CONSEQUENTLY ERRED IN LEVYING PENALTY U/S 271(1)(C) OF THE ACT. 5. BEFORE LD. CIT(A), ASSESSEE FILED WRITTEN SUBMIS SION DATED 04.04.2013 WHEREIN IT WAS CONTENDED THAT IN THE QUA NTUM PROCEEDINGS LD. CIT(A) DIRECTED HE A.O. TO VERIFY THE CALCULATION. ASSESSEE CLAIMED THAT THE ASSESSEE HAD WITHDRAWN THE MONEY AND OFFERED IT FOR TAXES ON 12.09.2008 AND FILED HIS INCOME TAX RETURN FOR ASSESSMENT YEAR 2009-10 TAKING INTO ACCOUNT THE CAPITAL GAIN AND ALSO SUBMITTED THAT TH E AMOUNT WAS OFFERED FOR TAXATION IN ASSESSMENT YEAR 2007-08. THE DISCREPAN CY POINTED OUT BY THE A.O. WAS CLERICAL IN NATURE AND THERE IS NO MENS REA ATTACHED TO THE SAME. 6. LD. CIT(A), IN THE PENALTY PROCEEDINGS, OBSERVED AS UNDER, WHILE CANCELLING THE PENALTY IMPOSED BY A.O.: I HAVE PERUSED THE PENALTY ORDER, GROUNDS OF APPEA L, WRITTEN SUBMISSION AND DISCUSSED THE MATTER WITH THE AR OF THE APPELLANT VERY CAREFULLY. THE APPELLANT IS A RETIRED ARMY OFFICER OF 85 YEARS. THE QUANTUM APPEAL FILED BY THE APPELLANT WAS ALLOWED I N FAVOUR OF THE APPELLANT. THEREFORE, THE CONCEALMENT OF PENALTY D OES NOT LIE. IN VIEW OF THE ABOVE, THE PENALTY U/S 271(1)(C) AMOUNTING T O RS.6,92,777/- IS HEREBY DELETED. ITA NO.4169/DEL/2013 3 7. THOUGH THE REVENUE IS AGGRIEVED BY THE ORDER PAS SED BY LD. CIT(A). NEITHER LD. CIT(A)S ORDER PASSED IN QUANTUM APPEAL WAS PLACED BEFORE US NOR ANY MATERIAL WAS PLACED TO HIGHLIGHT THE MISTAK E, IF ANY, IN THE ORDER PASSED BY LD. CIT(A) TO CLAIM THAT THE QUANTUM APPE AL FILED BY ASSESSEE WAS WRONGLY ALLOWED BY LD. CIT(A) IN FAVOUR OF ASSESSEE . HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT THE ORDER PASSED BY LD. CIT(A), IN DELETING THE PENALTY LEVIED U/S 271(1)(C ), DOES NOT FALL FOR ANY INTERFERENCE. WE, THEREFORE, CONFIRM THE ORDER OF LD. CIT(A) AND DISMISS THE APPEAL FILED BY REVENUE. 8. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JUNE, 2015. SD./- SD./- ( N. K. SAINI) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT DATE: 29 TH JUNE, 2015 SP COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). ITA NO.4169/DEL/2013 4 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 29/6/15 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 29/6/15 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS 29/6/2015 SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 29/6 SR. PS/PS 7 FILE SENT TO BENCH CLERK 30/6 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER